Exercise $6-50($Algo$)$ Two$-$Stage Cost Allocation and Predetermined Rates $($LO $6-1,2,3)$

Tacoma Accessorles makes two laptop cases, Plastic and Leather, that require direct materlals, direct labor, and overhead. The

following data refer to operations expected for next quarter.

Tacoma uses a two$-$stage cost allocation system: It uses direct$-$materlal costs to allocate material handling overhead and direct$-$labor

costs to allocate fabrication overhead costs.

Required:

a$.$ Compute the material handing overhead rate for next quarter.

b$.$ Compute the fabrication overhead rate for next quarter.

c$.$ What is the total overhead allocated to the Plastic case next quarter?

d$.$ What is the total overhead allocated to the Leather case next quarter?