Answer the following questions using the information below:
Canberra Home Appliances sells a refrigerator and a freezer as a single package for $1100.Other data are in the chart below.
$$\begin{array} { | c | c | c | c | }
\hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \
\hline \text { Selling price } & \$ 925 & \$ 450 & \$ 1100 \
\hline \text { Manufactuning cost per unit } & \$ 620 & \$ 220 & \
\hline \text { Stand-alone product reverues } & \$ 1225000 & \$ 775000 & \
\hline
\end{array}$$
-Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation,what amount will be allocated to the refrigerator?

Question

Answer the following questions using the information below:
Canberra Home Appliances sells a refrigerator and a freezer as a single package for $1100.Other data are in the chart below.
 $$\begin{array} { | c | c | c | c | } 
\hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \
\hline \text { Selling price } & \$ 925 & \$ 450 & \$ 1100 \
\hline \text { Manufactuning cost per unit } & \$ 620 & \$ 220 & \
\hline \text { Stand-alone product reverues } & \$ 1225000 & \$ 775000 & \
\hline
\end{array}$$
-Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation,what amount will be allocated to the refrigerator?

Quizplus · Accepted Answer

The allocation is based on the proportion of the manufacturing cost of the refrigerator to the total manufacturing cost of both items. The refrigerator's cost is $620, and the freezer's cost is $220, totaling $840. The refrigerator's proportion is $620/$840. Multiply this by the package price of $1100 to get $811.90.

Answer the Following Questions Using the Information Below: Canberra Home

Answer the Following Questions Using the Information Below:
Canberra Home