Analyze the cost structure of Procter & Gamble (P&G). Identify and explain the various types of costs incurred by P&G in its manufacturing process. Discuss how P&G allocates overhead costs to its products. Evaluate the effectiveness of P&G's cost allocation methods in determining product costs. Provide recommendations for improving cost allocation accuracy.
Values:
oDirect Materials Cost: $10,000,000
oDirect Labor Cost: $5,000,000
oOverhead Costs: $3,000,000
oTotal Units Produced: 1,000,000