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SHAWN'S SPORTING EQUIPMENT PRODUCES BATS AND GLOVES DEPT A BATS, DEPT B GLOVES OVERHEAD IS 200 PERCENT OF DIRECT LABOR COSTS SALES REVENUE DIRECT
SHAWN'S SPORTING EQUIPMENT PRODUCES BATS AND GLOVES DEPT A BATS, DEPT B GLOVES OVERHEAD IS 200 PERCENT OF DIRECT LABOR COSTS SALES REVENUE DIRECT LABOR DIRECT MTL A. COMPUTER PROFIT FOR EACH USING PLANTWIDE ALLOCATION BATS GLOVES $3,000,000.00 $750,000.00 $500,000.00 $4,000,000.00 $300,000.00 $550,000.00 B. WHAT WOULD THE PROFITS BE IF DEPARTMENT A'S RATE IS REALLY 300 PERCENT AND DEPT B IS 100 PERCENT OF DIRECT LABOR? ALLOCATE BY DEPARTMENT ACTUAL RATES. C. WHAT DO THE TWO ALLOCATIONS TELL YOU?
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