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aan omaatioommakes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data efer to operations expected for next month.
aan omaatioommakes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data efer to operations expected for next month. Revenue Direct material Direct labor Overhead: Direct-material related Direct-labor related Al $ 240,000 100,000 68,000 B2 Total $720,000 $960,000 200,000 300,000 161,580 229,5ee 87.000 82,620 Required: Channing uses a two-stage cost allocation system. It uses direct-material costs to allocate direct-materials related overhead and direct labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month? d. What is the total overhead allocated to product B2 next month? of directal a. Predetermined rate b. Predetermined rate C Total overhead (A1) d. Total overhead (B2)
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