5. You manufacture two types of white paint: Gloss and Flat. You are allocating MOH using ABC costing, and you use three cost pools: (1) Material Handling, (2) Machine Setup, and (3) Inspection Total MOH is $100,000 and consists of: Material Handling: $50,000 which is allocated using Direct Labor hours, Machine Setup $30,000 which is allocated using Machine Hours, and Inspection $20,000 which is allocated using number of inspections. The company makes two products: White gloss paint and flat white paint. The following data is available for the production period:

Direct Labor Hours: Gloss Paint = 10 hours; Flat Paint = 5 hours

Machine Hours: Gloss Paint = 8 hours; Flat Paint = 2 hours

Number of Inspections: Gloss Paint = 1 inspection; Flat Paint = 3 inspections

a. Allocate the Material Handling MOH among the two products.

b. Allocate the Machine Setup MOH among the two products.

c. Allocate the Inspection MOH among the two products.

d. How much total MOH was allocated to each product?

e. How much was total MOH per your calculation? Did it equal the total prescribed in the instructions?