Question 1: Cost allocation Product A Product B Total sales volume (units) 360 200 560 Revenue $2,000 $12,000 $14,000 Variable costs: direct materials $400 $800 $1,200 direct labor $800 $2,000 $2,800 Contribution margin $800 $9,200 $10,000 Fixed costs $8,400 Profit $1,600 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$ per DL$ allocated costs for A=$ allocated costs for B=$ b) Compute the profit margins for products A and B: profit margin for A=$ profit margin for B=$ Enter negative numbers with a minus sign, i.e., a loss of $1,000 should be entered as -1000, not as (1000) or ($1000). e) Allocate the fixed costs between products A and B, using the number of units as the cost driver. allocation rate=$ per unit allocated costs for A=$ allocated costs for B-$ van hasild Ma vice tha alinrated rnsts from nart