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1) The above exhibit should include the allocation of shared fixed costs of $2,100,000 using direct labor hours as the cost driver. In addition, the

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1) The above exhibit should include the allocation of shared fixed costs of $2,100,000 using direct labor hours as the cost driver. In addition, the amount of unused capacity for labor, depreciation, and supervision should also be determine.

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2) Disscuss the resulting behavior of a product line manager, PLM. If the PLMs are evaluated on Product Margin Post Allocation, what could the PLMs do to improve the margin? In clude both beneficial and harmful behavior. Explain how each could be tied to the way the product margins are calculated.

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