A company has fixed manufacturing overhead of $400,000 that needs to be allocated to a product cost object. Six different allocation bases are being considered, as shown in the table immediately below. Allocate the $400,000 of fixed manufacturing overhead under each of the six bases presented in the table.

Given Information			SOLUTION
Possible Allocation Base	Total Factory Amount	Product 1 Total Amount	Overhead per Unit of Allocation Base (round to nearest penny)	Overhead Allocated to Product 1 (round to nearest dollar)
Direct labor hours	5,000	500
Direct labor dollars	$200,000	$15,000
Machine hours	2,500	260
Direct material pounds	40,000	3,000
Direct material dollars	$400,000	$25,000
Units produced	25,000	3,000