Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows:

	Baseball Bats	Tennis Rackets
Sales Revenue	$1,540,000	1,000,000
Direct Labor	340,000	170,000
Direct Materials	561,000	283,000

Required:

a. Compute the profit for each product using plantwide allocation.

	Profit
Baseball Bats	?
Tennis Rackets	?

b. Maria, the manager of Department T, was convinced that tennis rackets were really more profitable than baseball bats.She asked her collages in accounting to break down the overhead cost for the two departments.She discovered that had department rates been used, Department B would have had a rate of 50 percent of direct labor cost and Department T would have had a rate of 200 percent of direct labor cost. Recompute the profit for each product using each department's allocation rate (based on direct labor cost).

	Profit
Baseball Bats	?
Tennis Rackets	?