allocate the fixed cost to each product line using traditional allocation method. what is operating income for each line? what would you reccomend to carol? (allocate fixed cost based on...
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. Strawberry Vanilla Chocolate Direct labor (per 1,000 gallons) $758 $833 $1,133 Raw materials (per 1,000 gallons) 808 508 608 Required: a. If the number of...
1. 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: Strawberry Vanilla Chocolate Direct labor (per 1,000 gallons) $ 752 $ 827 $ 1,127 Raw materials (per 1,000 gallons) 802 502 602 Required: a....
A) For each product line, Compute Operating Income using the Traditional Costing System. Product 540 X. = $ Product 137 Y. = $ Product 249 S. = $ B) For each product line, Compute Operating Income using the Activity-Based Costing System. Peoduct 540 X. = $ Product 137. Y. = $ Product 249. S. = $ C) Using the Following formula, Compute the percentage difference in operating income for each of the product lines of Ayala: ( Operating Income (ABC)...
Traditional costing system allocate overhead based on a standard unit-based measure that ll products have in common machine hours, processing time or direct labor hours but these allocation measures assume all overhead cost are directly related to units produced. Company uses a standard allocation method for overhead of 400% of direct labor costs. to produce 100000 units of product A requires $35000 of direct material and $80000 of direct labor costs. To produce 3000 units of product B requires $12000...
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. StrawberryVanillaChocolateDirect labor (per 1,000 gallons)$750$825$1,125Raw materials (per 1,000 gallons)800500600 Required:a. If the number of hours of labor per 1,000 gallons is 50 for strawberry, 55 for vanilla, and...