For many years, Zapro Company manufactured a single product called a mono-relay. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called a bi-relay which has become increasingly popular. The bi-relay is a more complex product, requiring one hour of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The mono-relay requires only 0.5 hour of direct labor time per unit and only a small amount of machining. Manufacturing indirect costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new bi-relay, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Selling price per unit and direct costs per unit are as follows: Mono-Relay Bi-Relay Selling price $55 $100 Direct materials $35 $48 $6 $12 Direct labor (0.5 hour and 1.0 hour @ $12 per hour) Management estimates that the company will incur $1,000,000 in manufacturing indirect costs during the current year and 30,000 units of the mono-relay and 10,000 of the bi-relay will be produced and sold. Assignment: 1. Assuming that the company continues to allocate manufacturing indirect costs on the basis of direct labor-hours: a. Determine the amount of indirect manufacturing costs to be allocated to each product line. b. Provide the monthly Profit & Loss statement for each product line