Question: A large supermarket chain has a centralized bakery facility that prepares frosting for the bakeries in its many retail stores. The $30,000 cost of preparing

A large supermarket chain has a centralized bakery facility that prepares frosting for the bakeries in its many retail stores. The $30,000 cost of preparing the frosting is assigned on the basis of containers of frosting used. Based on the following data for five store bakeries, assign frosting costs using the direct method:

Store A, 200 containers; Store B, 400 containers; Store C, 150 containers; Store D, 120 containers; and Store E, 130 containers.

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