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Remember that with activity-based costing (Part B), there is more than one driver and more than one rate, and the allocation to a product line
Remember that with activity-based costing (Part B), there is more than one driver and more than one rate, and the allocation to a product line is the sum of several individual allocations. Each part of the problem is worth five points, and you get five tries per part. Family Supermarkets has decided to increase the size of its Lansing store. It wants information about the profitability of its individual product lines: meats, fresh produce, and packaged food. The following data is for 2019 for each product line: Meats Fresh Produce Packaged Foods Revenue $805,000 $825,000 $485,000 Cost of goods sold $605,000 $585,000 $365,000 purchase orders 271 348 121 hours of stocking shelves 204 2,204 1,101 items sold 312,000 422,000 123,000 The Company also provides the following information for 2019 for its three support activities: Support Activity Cost Driver Budgeted Cost $125,000 purchase orders Ordering Shelf stocking $79,000 hours of stocking shelves items sold Customer support $175,000 REQUIRED (ROUND ALL OVERHEAD RATES TO TWO DECIMAL PLACES AND ALL ALLOCATIONS TO THE NEAREST DOLLAR.] Part A (5 tries; 5 points) Family Supermarkets currently uses a single-driver system to allocate period costs to its product lines. The single driver that is used is the the number of items sold of each product line. Using this system, compute the allocation to Fresh Produce. 140400 Incorrect
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