Tom SPORTING EQUIPMENT PRODUCES BATS AND GLOVES DEPT A BATS, DEPT B GLOVES OVERHEAD IS...
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Tom SPORTING EQUIPMENT PRODUCES BATS AND GLOVES DEPT A BATS, DEPT B GLOVES OVERHEAD IS 200 PERCENT OF DIRECT LABOR COSTS BATS GLOVES SALES REVENUE $3,000,000.00 $4,000,000.00 DIRECT LABOR $500,000.00 $250,000.00 DIRECT MTL $200,000.00 $400,000.00
A. COMPUTER PROFIT FOR EACH USING PLANTWIDE ALLOCATION
B. WHAT WOULD THE PROFITS BE IF DEPARTMENT A'S RATE IS REALLY 300 PERCENT AND DEPT B IS 100 PERCENT OF DIRECT LABOR? ALLOCATE BY DEPARTMENT ACTUAL RATES.
C. WHAT DO THE TWO ALLOCATIONS TELL Y
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