A. If the number of hours of labor per 1000 gallons is 62 for strawberry, 68 for vanilla, and 100 for chocolate, compute the total cost of 1000 gallons of each flavor using plant wide allocation B. Charlene’s department uses older, outdated machines.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 machine. After she requested that the overhead costs be broken down by department, the following information was discovered (see photo). 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 1000 gallons of each flavor of ice cream using the department allocation rates computed in the requirement (b), if the number of machine hours for 1000 gallons of each of the three flavors of ice cream are as follows: strawberry 62, vanilla 68, and chocolate 162. Direct labor hours by product remain the same as in requirement (a). Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven managesDepartment SV and Charlene manages Department C. The product costs (per thousand gallons) follow.Direct labor (per 1,000 allons)Rav nateriala (per 1,000 gallons)Stravberry Vanilla$762Chocolate$1,137612812512Required:a. If the number of hours of labor per 1,000 gallons is 62 for strawberry, 68 for vanilla, and 100 for chocolate, compute the total cost of1,000 gallons of each flavor using plantwide allocation.b. Charlene's department uses older, outdated machines.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 ofDepartment SV, which recently bought state-of-the-art machines. After she requested that overhead costs be broken down bydepartment, the following information was discovered:Departnent V$101,200Department C$32,130OverheadMachine-25,32037,200hoursLabor-hours25,32018,900Using machine-hours as the department allocation base for Department SV and iabor-hours as the department allocation base forDepartment 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) ifthe number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberry, 62: vanilla, 68: andchocolate, 162. Direct labor-hours by product remain the same as in requirement (a).Complete this question by entering your answers in the tabs below.Required ARequired BRequired CIf the number of hours of labor per 1,000 gallons is 62 for strawberry, 68 for vanila, and 100 for chocolate, compute the totalcost of 1,000 galons of each flavor using plantwide allocation.Total CostStrawberyVan illaChocolateRegulredd

Under a plantwide allocation system, the overhead rate is the same for all departments while under…

Main Street ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per thousand gallons) follow. Direct labor (per 1,000 gallona) av nateriala (per 1,000 gallons) Stravberry Vanilla $837 512 Chocolate $1,137 612 $762 812 Required: a. If the number of hours of labor per 1,000 gallons is 62 for strawberry, 68 for vanilla, and 100 for chocolate, compute the total cost of 1000 gallons of each flavor using plantwide allocation. b. Charlene's department uses older, outdated machines. She beleves 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: Departaest FV $101,280 Departnent C $32,130 Overhead Machine- 25,320 37,200 hours Labor-bours 25,320 18,900 Using machine-hours as the department allocation base for Department SV and iabor-hours as the department alocation base for Department C, compute the allocation rate for each. c. Compute the cost of 1000 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, 62; vanilla, 68: and chocolate, 162. Direct labor-hours by product remain the same as in requirement (a).

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 1PA: Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve...