Exercise 6-50 (Static) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3) Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter. Revenue Direct material Direct labor Overhead: Material handling overhead Plastic $480,000 180,000 60,000 Leather $500,000 260,000 40,000 Total $980,000 440,000 100,000 198,000 140,000 Fabrication overhead Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct- labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling 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? a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) % of direct-materials cost % of direct-labor cost