Plant operations report and the private-label sales report

Assignment Help Operation Management

Reference no: EM1389826

Based on information on both the Help screens for the Plant Operations Report and the Private-Label Sales Report, which of the following statements regarding how plant costs are allocated between branded and private-label footwear is true?

A. The total amount the company spends for production-run set-up is allocated between branded production costs and private-label production costs according to their respective percentages of total pairs produced-thus, if 65% of the total pairs produced at a plant are branded then 65% of total production run set-up costs are allocated to branded production costs.

B. The total amount the company spends for compensation of production workers is allocated between branded production costs and private-label production costs according to their respective percentages of total pairs sold-thus, if 83% of the company's total pairs sold are branded then 83% of total compensation costs are allocated to branded production costs.

C. The total amount the company spends for materials is allocated between branded production and private-label production according to their respective percentages of total pairs produced-thus, if 89% of the total pairs produced at a plant are branded then 89% of total materials costs are allocated to branded production.

D. Annual plant supervision costs and plant depreciation costs are allocated between branded production and private-label production according to their respective percentages of total pairs produced-thus, if 95% of the total pairs produced at a plant are branded then 95% of annual plant supervision costs and plant depreciation costs are allocated to branded production.

E. The total amount the company spends for best practices training is allocated between branded production costs and private-label production costs according to their respective percentages of revenue generated-thus, if 88% of the company's revenues come from branded sales then 88% of best practices training costs at each plant are allocated to the costs of producing branded footwear.

Reference no: EM1389826

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