Main Street ice Cream Compeny 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. Stravberry Vanilla $750 B00 Chooolate Direet labor (per 1,000 gallona) Raw nateriale (per 1,000 gallons) $1,125 500 600 Required: aIf the number of hours of labor per 1,000 gallons is 50 for strawberry, 55 for vanilla, and 75 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 b. Charlene's department uses older, outdated machines.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: Departnent aV $105,840 Department C $23, 760 Overhead Machine- houre Labor-hours 25,200 36,000 25,200 18,000 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 requirement (b) if the number of machine-hours for 1,000 galons of each of the three flavors of ice cream are as follows: strawberry. 50; vanilla, 55; and chocolate, 150. Direct labor-hours by product remain the same as in requirement (a). Complete this question by entering your answers in the tabs below. Required A Required B Recuired C If the number of hours of labor per 1,000 gallons is S0 for strawberry, 55 for vanila, and 75 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. Total Cost Strawbery Vanila Chocolate

Name: Main Street Ice cream company uses a plant wide allocation method to a
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Main Street Ice cream company uses a plant wide 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. Sv