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8 The manufacturing plant is in a remote location, so they offer housing and food for its employees. The total cost is $10,000,000 per
8 The manufacturing plant is in a remote location, so they offer housing and food for its employees. The total cost is $10,000,000 per year. Currently, it is charged to divisions based on total products manufactured. Look at the data below and apply the ABC concepts to recommend an allocation of the production engineering costs to the four products Explain your choice of the basis for allocation. Product Product A # of units produced 20,000 # of direct labor hours used 500 Production Total Manufacturing Machine Hours 50,000 Costs 5,000,000 Product B 100,000 500 7,500 20,000,000 Product C 300,000 1,200 Product D 900,000 900 50,000 40,000 40,000,000 80,000,000
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