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Blaine Company has a total of $ 1 , 0 0 0 , 0 0 0 in manufacturing overhead costs. Of this amount, $ 7
Blaine Company has a total of $ in manufacturing overhead costs. Of this amount, $ is directly related to the number of product batches produced during the year. The remaining $ in overhead is for facility support property taxes, security costs, general administration, etc. and does not vary at all with the level of activity. How should Blaine Company allocate facility support costs to the different products it produces?
By the number of batches
By product profitability
By direct labor hours
Facility support costs should not be allocated to products.
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