Chen estimates that it will incur total indirect costs of $240000 in Year4. Chen Inc. is considering using direct labor hours or machine hours as a cost driver (activity driver) to allocate indirect costs to its 3 products. The following table summarizes the estimated amounts of each cost driver in Year4, by product line. Use activity rates to allocate overhead (NOT PROPORTIONS). Round all activity rates to the nearest dollar. USe rounded rates for all later computations. Cost driver choices... _Product A_ _Product B_ _Product C_ Direct labor hours (dlhrs) 3000 6000 21000 Machine hours (mhrs) 4000 3200 8800 1. Assume Chen used a single plant-wide rate based on direct labor hours. What would that rate be? 8 2. Assume Chen used a single plant-wide rate based on machine hours. What would that rate be? 15 3.Assume Chen used a single plant-wide rate based on direct labor hours. How much of the estimated indirect costs of 240000 would be allocated to Product B? (See above. Use rates, not proportions.) 4.Assume Chen used a single plant-wide rate based on machine labor hours. How much of the estimated indirect costs of 240000 would be allocated to Product C? (See above. Use rates, not proportions.) 5. Assume in Year4, Chen produces an order of 1,000 units of Product C that uses the following resources: 130 machine hours (mhrs) 89 direct labor hours (dlhrs) If Chen uses mhrs for the single plant-wide cost driver, how much indirect costs are allocated to this order?

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