Question: Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for

Channing Corporation makes two products (A1 and B2) that require direct materials,

Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for next month. Al B2 Total Revenue Direct material Direct labor Overhead: $200,000 $600,000 $800,000 80,000 160,000 240,000 60,000 142,500 202,500 60,000 Direct-material related Direct-labor related 56,700 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 82 next month? a. Predetermined rate % of direct-materials cost b. Predetermined rate % of direct-labor cost c. Total overhead (A1) d Total overhead (B2)

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