Given the information below, fill in the chart.The current selling prices of Almond Dream, Krispy Krackle, and Creamy Crunch are $85, $55, and $35 per case, respectively.Determine which product(s), if any, should be dropped. What characteristic of the product that should be dropped makes it appear relatively unprofitable? I primarily need help figuring out how these answers are computed. thank you!dont provide answer in image format Product costsLabor-hours per caseTotal cases producedMaterial cost per caseDirect labor cost per caseLabor-hours per productTotal overhead = $69,500Total labor-hours = 11,000Direct labor costs per hour = $6Allocation rate per labor-hour = (a).Costs of productsAlmond Dream Krispy Krackle Creamy CrunchMaterial cost per caseDirect labor cost per caseAllocated overhead per case(to be computed)Product cost$71,0008427,000∞$8 $42(b)(e)$D31,0002 $183,000692 S18(c)S1,000961,00096(g)

Cost accounting is a mechanism adopted by entities to find out the true cost of a specific service,…

Answered: Product costs Labor-hours per case…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Given the information below, fill in the chart.

The current selling prices of Almond Dream, Krispy Krackle, and Creamy Crunch are $85, $55, and $35 per case, respectively.

Determine which product(s), if any, should be dropped. What characteristic of the product that should be dropped makes it appear relatively unprofitable?

I primarily need help figuring out how these answers are computed. thank you!

dont provide answer in image format

Product costs
Labor-hours per case
Total cases produced
Material cost per case
Direct labor cost per case
Labor-hours per product
Total overhead = $69,500
Total labor-hours = 11,000
Direct labor costs per hour = $6
Allocation rate per labor-hour = (a).
Costs of products
Almond Dream Krispy Krackle Creamy Crunch
Material cost per case
Direct labor cost per case
Allocated overhead per case(to be computed)
Product cost
$
7
1,000
8
42
7,000
∞
$
8 $
42
(b)
(e)
$
D
3
1,000
2 $
18
3,000
69
2 S
18
(c)
S
1,000
9
6
1,000
96
(g)

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