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This information relates to the next three questions. Seasons Inc. produces two products: Summer and Winter. The information provided below relates to the company's most

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This information relates to the next three questions. Seasons Inc. produces two products: "Summer" and "Winter". The information provided below relates to the company's most recent financial year. Factory supervisory labour cost (an indirect cost of each unit of output produced) $500,000 Season's factory supervisors largely spend their time supervising employees working on the two products. The machines used to produce Season's product operate autonomously-i.e.. it requires minimal employee intervention. Number of machine hours per unit of output: Product Summer Product Winter 8 hours per unit 1 hour per unit Number of employee labour hours per unit of output: Product Summer Product Winter 1 hour per unit 1 hour perunit Number of units of output produced Product Summer Product Winter 500 units 3.000 units . Using machine hours as the single allocation base for the company's factory supervisory labour cost, the amount of this indirect cost that would be allocated to each unit of Product Winter is closest to: O $148 $143 O $71 O $167 Insufficient information to calculate amount Using number of units of output produced as the single allocation base for the company's factory supervisory labour cost, the amount of this indirect cost that would be allocated to each unit of Product Winter is closest to: $148 O $143 O $71 O $167 O Insufficient information to calculate amount Which of the following statements about the company (Seasons Inc) and the allocation of its factory supervisory labour indirect cost (FSIC) to units of output are likely to be true: 1. Using units of output as the allocation base to allocate FSIC would result in a more accurate allocation (of FSIC) to each unit of output produced compared to using machine hours as the allocation base. 2. FSIC will be part of the value of inventory of any unsold units (of output) on the company's balance sheet. 3. Changing the allocation base from machine hours to units of output would not change the total amount of FSIC that is allocated to both these products (ie, the sum of FSIC allocated to Winter and FSIC allocated to Summer would remain the same irrespective of the allocation base chosen). Statement 1 only Statement 2 only Statement 3 only Statement 2 and 3 only Statement 1, 2 and 3

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