Moneerah Alsa. Company uses a plantwide allocation method to allocate overhead b

Question

Moneerah Alsa. Company uses a plantwide allocation method to allocate overhead based on direct labor- labor-hour. Strawberry and vanilla lavors are produced in Department SV.Chocolate is Main Street Ice Cream P Flag question hours at a rate of $2 per 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 gallons) Raw materials (per 1,000 gallons) Strawberry Vanilla Chocolate $ 753 828 1,128 603 803 503 If the number of hours of labor per 1,000 gallons is 50 for strawberry, 62 for vanilla, and 160 for chocolate, Compute the total cost of 1,000 gallons of each flavor using plantwide allocation. Question 4 Not yet answered Marked out of 12.00 Straw Choose... 1,455 Flag question Vanilla 2,256 2,051 Chocolate 1,656 1,506

Explanation / Answer

a Strawberry Vanilla Chocolate Direct Labor (per 1,000 gallons) 753 828 1128 Raw Materials (per 1,000 gallons). 803 503 603 Overhead 100 124 320 Total cost (per 1,000 gallons) 1656 1455 2051 50*2=100 62*2=124 160*2=320 b Department SV has an overhead allocation rate of $3.50 per machine-hour ($88,305 ÷ 25,230 machine hours). Department C has an overhead allocation rate of $0.95per labor-hour ($17,195 ÷ 18,100 labor-hours). c Strawberry Vanilla Chocolate Direct Labor (per 1,000 gallons) 753 828 1128 Raw Materials (per 1,000 gallons). 803 503 603 Overhead 175 217 145 Total cost (per 1,000 gallons) 1731 1548 1876 50*3.5=175 62*3.5=217 153*.95=145

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