Question 1: Cost allocation Product A Product B Total sales volume (units) 180 100 280 Revenue $3,000 $18,000 $21,000 Variable costs: direct materials $600 $1,200 $1,800 direct labor $1,200 $3,000 $4,200 Contribution margin $1,200 $13,800 $15,000 Fixed costs $12,600 Profit $2,400 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rates Xper DLS allocated costs for A=$ x allocated costs for B=$ b) Compute the profit margins for products A and B: profit margin for A$ X profit margin for B- Enter negative numbers with a minus sign, i.e., a loss of $1,000 should be entered as -1000, not as (1000) or e) Allocate the fixed costs between products A and B, using the number of units as the cost driver, allocation rates X per unit allocated costs for A$ x allocated costs for B=$ X These allocated amounts are very different from what you not in nartal In nonnunt ut