4-45 Cost Accumulation and Allocation Zhao Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: direct material, $200,000; direct labor. $75,000; and indirect production, $80,000. The grand total was $355,000. The machining department incurred 70% of the direct-material costs, but only 335% of the direct. labor costs. As is commonplace, indirect production costs incurred by each department were allocated to products in proportion to the direct-labor costs of products within the departments. Three products were produced Product Direct Material 40% 30% .20% Direct Labor Sigma Chi Delta Total for the machining department 30% 30% .49% 100% 4% 4% Sigma Chi Delta Total added by finishing department 335% 335% The indirect production costs incurred by the machining and finishing departments and al products therein amounted to machining, $38,000 and finishing, $42,000 located to all