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Business, 20.08.2019 19:10 sandstorm163

The righteous brothers run a smokehouse where they process, smoke and sell turkeys, pork ribs and beef brisket. they have been allocating overhead to the product lines using direct labor hours. a consultant has recommended using smoke house hours as a better measure of unit contribution margin. here is selected cost information. description turkeys ribs brisket monthly production 960 575 1,695 price per unit $ 7.51 $ 8.48 $ 8.99 smoke house hours 139 74 465 direct labor hours 48 31 62 direct labor hourly rate $ 16.50 $ 16.50 $ 16.50 material cost $ 2,189.00 $ 1,599.00 $ 1,661.00 direct labor cost $ 792.00 $ 512.00 $ 1,023.00 total pooled overhead $ 6,750.00 $ 6,750.00 $ 6,750.00 which of product lines is the most profitable under either cost allocation basis

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