7. Munoz Sporting Equipment manufactures baseball bats and tennis rackers Department produces the baseball Bats and Department T produces the tennis rackets Munoz currently uses planta de location to allocate overhead to products Drect labor costs the allocation base. The rate used is 100 percent of direct labor cost Last year, revenue, materials and direct labor were as follows. Tennis $1,175,00 Direct Labor 100.0 certas 295. lo Required a Compute the profit for each product using plantideslocation b. Mart the manager of Department was convinced that tennis rackets were really more profitable than basalbas She asked her colleague in accounting to break down the overhead costs for the tre departments. She covered that had departments been used Department would have had a rate of 50 percent of direct labor cost and Department T would have had a rate of 200 percent of direct labor cost. Recompute the profits for each product using each department's location rate based on direct labor cost Profit Using and location 7. Munoz Sporting Equipment manufactures baseball bats and tennis rackers Department produces the baseball Bats and Department T produces the tennis rackets Munoz currently uses planta de location to allocate overhead to products Drect labor costs the allocation base. The rate used is 100 percent of direct labor cost Last year, revenue, materials and direct labor were as follows. Tennis $1,175,00 Direct Labor 100.0 certas 295. lo Required a Compute the profit for each product using plantideslocation b. Mart the manager of Department was convinced that tennis rackets were really more profitable than basalbas She asked her colleague in accounting to break down the overhead costs for the tre departments. She covered that had departments been used Department would have had a rate of 50 percent of direct labor cost and Department T would have had a rate of 200 percent of direct labor cost. Recompute the profits for each product using each department's location rate based on direct labor cost Profit Using and location