Consider the cost allocation system used at Sandia Custom Furniture and illustrated in Exhibit 6.9 Required: The system is referred to as a two-stage cost allocation system, because: There are two cost pools. There are two cost objects. O Cost is allocated first to intermediate cost pools and from these pools to cost objects. All of the above O None of the above. Exhibit 6.9 Two-Stage Cost Allocation-Sandia Custom Furniture S-668 Total Units produced 80 240 Machine hours 1400 4.200 5.600 Direct labor hours 2.400 3.900 6.300 Direct $ 40,000 $ 3.000 $ 76,00 Direct labor 72.000 78.000 150,00 Manufacturing overhead Utilities 3360 Supplies 3.500 Training 42,000 Supervision 7.60 Machine depreciation 41.370 Plant depreciation 56.00 Miscellaneous 28 Total manufacturing overhead $25.000 Bunde Overhead Allocation Base $100.800 5,600 machine-hors 5151,200 + 6.300 direct labor-hows - 24 Product Costing Dirnd S- 5-665 Total Labor Overhead 25 related Labor