#3

Edlie Accessories (EA) makes trovel bags, both for sale under their own label ("Branded") and for other resellers to put their lobel on the bags ("Private-Label"). The bags sold through the two channels ore similor, but they differ slightly in the quality of materials and detail in the manufacturing process. The manufacturing plant ot EA hos two deportments. Deportment A-101 was the original monufocturing focility ond many of the machines are original. Deportment A102 is new, with stote-of-the-ort equipment. The new equipment focilitotes the odditional care taken with the Branded product. The following information presents finoncial results for the two models from last year: The product costing system ot EA allocates monufacturing overhead on the bosis of direct lobor costs. Required: a. Compute the profit or loss for each product using plontwide allocation. b. Compute the profit or loss for each product using deportment allocation. Note: For all requirements, loss amounts should be Indicated by a minus sign. Do not round Intermediate calculations. Enter your answers rounded to the nearest whole number