Question

Solve for a,b,c,d,e,f,g, Please include all calculations.

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

Answer 1

Solution

The table has been re-drafted as follows. Refer to the question, and the respective values in the following table.

Particulars	Almond Dream	Krispy Krackle	Creamy Crunch
(1) Product Costs
Labour hour per case	7	3	1
Total Cases Produced	1,000	1,000	1,000
Material Cost per case	$                   8.00	$                 2.00	$                   9.00
Direct Labour Cost per case	$                 42.00	$              18.00	$                   6.00
Labour hour per product	7,000	3,000	1,000
Total Overhead = $ 69,600.00
Total Labour-hours = 11,000
Labour Cost per hour = $ 6.00
Allocation rate per labour-hour (a) =
$ (69600 / 11000) = $ 6.33 (Approx)
(2) Costs of Products
Material Cost per case	$                   8.00	$                 2.00	$                   9.00
Direct Labour Cost per case	$                 42.00	$              18.00	$                   6.00
Allocation Overhead per case
(Allocation Rate X Labour hour per case)	$                 44.31	$              18.99	$                   6.33
PRODUCT COST PER CASE	$                 94.31	$              38.99	$                 21.33
TOTAL PRODUCT COST	$        94,310.00	$      38,990.00	$        21,330.00