Question: please help woth part a and part b This is a cost allocation problem for a merchandising firm. Since merchandising firms do not have overhead,

This is a cost allocation problem for a merchandising firm. Since merchandising firms do not have overhead, you must allocate "support costs" instead of "overhead costs. Also, the allocations in this problem are to a product line, not to an individual product or job. Nonetheless, the allocation process is the same. Just follow the three steps used in the lectures: 1. Read the problem and question carefully to determine the cost driver. 2. Compute the "overhead" rate budgeted operating costs/budgeted driver for all product lines. 3. Allocate to the specific product line: overhead rate x same driver as in (2) but for the specific product line. Remember that with activity-based costing (Part B), there is more than one driver and more than one rate, and the allocation to a product line is the sum of several individual allocations. Each part of the problem is worth five points, and you get five tries per part. Family Supermarkets has decided to increase the size of its Lansing store. It wants information about the profitability of its individual product lines: meats, fresh produce, and packaged food. The following data is for 2021 for each product line Fresh Produce Packaged Foods Meats $805,000 $820,000 $470,000 Revenue Cost of goods sold purchase orders $605,000 $500,000 $350,000 270 340 126 hours of stocking shelves 229 2,010 1,081 items sold, 326,000 456,000 116,000 The Company also provides the following information for 2021 for its three support activities: Cost Driver Support Activity Ordering purchase orders Shelf stocking hours of stocking shelves Customer support items sold Budgeted Cost $121,000 $53,000 $180,000 Family Supermarkets has decided to increase the size of its Lansing store. It wants information about the profitability of its individual product lines: meats, fresh produce, and packaged food. The following data is for 2021 for each product line Meets Fresh Produce Packaged Foods $805,000 Revenue Cost of goods sold $820,000 $470,000 $500,000 $605,000 270 $350,000 Purchase orders 126 hours of stocking shelves 340 2,010 229 1,001 tems sold 326,000 450.000 116,000 The Company also provides the following information for 2021 for its three support activities Support Activity Cest Driver Budgeted Cost $121,000 Ordering purchase orders Shelf stocking $13,000 hours of stocking shelves Customer support $100,000 nem old REQUIRED (ROUND ALL OVERHEAD RATES TO TWO DECIMAL PLACES AND ALL ALLOCATIONS TO THE NEAREST DOLLAR Part A (5 tries points) Family Supermarkets currently uses a single-driver system to allocate period casts to its product lines. The single driver that is used is the the number of items sold of each product ine. Using this estem, compute the allocation to Packaged Foods Subst AnswerTe 0/5 Part B (5 tries; 5 points) of Family Supermarkets instead used an activity-based costing system to allocate period costs, with the cost pools and cost drivers listed in the tables above, how much would be allocated to Meats
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