Exercise 6-48 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-3, 4, 5) 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. A1 B2 Total $ 110,000 $ 330,000 $ 440,000 35,000 70,000 105,000 42,000 99,750 141,750 Revenue Direct material Direct labor Overhead: Direct-material related Direct-labor related 16,800 14,175 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 B2 next month? Predetermined rate % of direct-materials cost % of direct-labor cost | | | | Predetermined rate Total overhead (A1) Total overhead (B2)