Lincoin Company has a factory with the following characteristics for the week: direct labor of $8927, direct materials of $6041 xed overhead of $10438, variable overhead of $16731, 1224 units produced, and 188 shipments made. One of its products is LQ6. LQB used 46 hours oflabor. The factory made 338 units of L06 ata materials cost of $4.11 per unit. L06 also requires 13 shipments. On average, labor costs are $20.92 per houn For this question, assume there is one cost pool with direct materials as the allocation base. How much overhead cost is allocated to LQ? {round to whole number of $1 Answer. Now assume that there are two cost pools. Cost pool 1 includes fixed overhead and uses shipments as the allocation base. Cost pool 2 includes variable overhead and uses direct labor as the allocation base. How much total overhead is allocated to LQ6? (round to whole number of $1 One of the two cost allocation amounts calculated above is larger than the other. What is the best explanation for the difference in results for the two cost allocation systems? O a. Production of LQ6 is very materials intensive relative to other products made in the factory. O b. Production of LQ6 is very labor intensive relative to other products made in the factory. O c. Production of LQ6 is very shipments intensive relative to other products made in the factory. O d. Direct materials is not a good choice for allocation base since it isn't the cost driver. O e. More cost pools means each pool has less in it and thus less overhead gets allocated