The Harrison Corporation manufactures a variety of small toys popular with children and their parents. It allocates indirect costs to different products using the following allocation bases and application rates:

Yue Lee is responsible for manufacturing toy trucks at the lowest possible cost. The direct material costs of making toy trucks are \($4\) per unit. Lee has no control over the cost of the direct materials, but he can influence how the toy trucks are made. The toy trucks could be made using 10 minutes of direct labor and 20 minutes of machine time.
Another option is to use 30 minutes of direct labor and five minutes of machine time.
The direct cost of labor is \($12\) per hour.
Which manufacturing method will minimize the total cost of the toy trucks?

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Allocation Base Direct labor hours (DLH). Machine hours (MH) Application Rate $10/DLH $20/MH