Ask Question
BusinessBusiness
7 April, 20:50

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) $ 762 $ 837 $ 1,137

Raw materials (per 1,000 gallons) 812 512 612

Requirement 1:

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 1,000 gallons of each flavor using plantwide allocation.

+5
Answers (1)
  1. 7 April, 23:42
    0
    Allocated MOH = $690

    Explanation:

    Giving the following information:

    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.

    The number of hours of labor per 1,000 gallons is 62 for strawberry, 68 for vanilla, and 100 for chocolate.

    We already have an estimated overhead rate. All we have to do is allocate the overhead using the following formula:

    Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base

    Allocated MOH = 3 * (62 + 68 + 100) = 3*230 = $690
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Step 1 of reconciling net income to net cash flow from operating activities is to a. add gains or subtract losses from investing activities. b. subtract gains or add losses from investing activities. c. subtract depreciation expense. d.
Answers (1)
a. Received $60,000 cash from the investors who organized Down, Inc. b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d.
Answers (1)
Maeko likes to purchase many of the products she needs online to save herself time. Her go-to online store is Zappos. She finds most of what she needs there and has had very satisfying shopping experiences in the past. What type of brand is Zappos?
Answers (1)
When general mills sought ideas on how to reduce the time to convert its production lines from one cereal to another, it sent a team to observe the pit crews at the indianapolis 500 race. this is an example of:?
Answers (1)
There are several ways that governments can increase or decrease the money supply. Match the descriptions below with the corresponding policy tool. It is possible that a description does not apply to any of the terms. 1. Open Market Operations 2.
Answers (1)
New Questions in Business
In a large open economy, what is one of the reasons the demand curve for loanable funds is downward sloping
Answers (1)
During its first and second years of operations, Rogers Company, a corporation using a periodic inventory system, made undiscovered errors in taking its year-end inventories that overstated year 1 ending inventory by $80,000 and overstated year 2
Answers (1)
3 Which of the following is a contribution of ancient Roman culture?
Answers (1)
Kevin and Maria are building their portfolios. Kevin purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio.
Answers (1)
Beth has just been hired as a cocktail waitress. she must be certified as a seller-server within:
Answers (1)
Home » Business » 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.
Sign Up Forgot Password?