Product Small colored glass Large colored glass Specialty omaments Exhibit 1 ZAUNER ORNAMENTS Calculation of Product Costs: Volume-Based Costing System Number of Ornaments Omaments per Box Number of Boxes DM & DL per Box Total DM & DL Allocated Overhead Total Cost Total Cost per Box 420,000 12 35,000 $ 4.00 300,000 6 50,000 $ 5.00 100,000 1 100,000 $ 7.00 $ 140,000 250,000 700,000 $ 599,268 428,049 142,683 $ 739,268 $ 21.12 678,049 $ 13.56 842,683 $ 8.43 820,000 185,000 $ 1,090,000 $ 1,170,000 $ 2,260,000