Basic Premium Total Sales volume (units) 400 600 1,000 $120,000 Revenue $60,000 $60,000 Variable costs $40,000 $25,000 $10,000 $15,000 $15,000 $25,000 Direct materials Direct labor Contribution margin $25,000 $30,000 $55,000 Fixed costs $50,000 $5,000 Profit Use direct labor dollars as the cost driver. Compute allocated fixed costs for Basic: $45,000 $30,000 $50,000 $2.00 $20,000