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Main Street Ice Cream Company uses e plant vide allocation method to allocate overhead based on direct labor hours to rate of $2 per labor-hour
Main Street Ice Cream Company uses e plant vide allocation method to allocate overhead based on direct labor hours to rate of $2 per labor-hour Strawberry and vanille flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department. The product costs per thousand gallons) follow. Direct labor (per 1,000 gallons) Raw materials per 1,000 gallons) Strawberry Vanilla Chocolate $761 836 $1,136 11511 611 Required: a. If the number of hours of labor per 1.000 gallons is 50 for strawberry, 55 for vanilla, and 75 for chocolate, compute the total cost of 1000 gallons of each flavor using plantwide allocation. b. Charlene's department uses older, outdated machines. She believes that her department is being allocated some of the overhead of Department SV, which recently bought state-of-the-art machines. After she requested that overhead costs be broken down by department, the following information was discovered: Overhead Machine hours Labor- hours Department SV Department C $86,054 $ 752 25,310 37,100 25,310 18,888 Using machine hours as the department allocation base for Department SV and labor hours as the department allocation base for Department C. compute the allocation rate for each c. Compute the cost of 1,000 gallons of each flavor of ice cream using the department allocation rates computed in requirement (b) if the number of machine-hours for 1.000 gallons of each of the three flavors of ice cream are as follows: strawberry. 50: vanilla, 55: and chocolate, 161. Direct labor-hours by product remain the same as in requiremental Complete this question by entering your answers in the tabs below. Ragurad R ed of the number of hours of labor per 1,000 gallons is 50 for strawberry S5 for vanills, and 75 for chocolate compute the total cost of 1.000 gallons of each vor using plantwice location Total Cost Required >
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