Revenue Direct material Direct labor Overhead: Direct-material related Direct-labor related A1 B2 Total $300,000 $900,000 $1,200,000 130,000 260,000 390,000 80,000 190,000 278,000 136,500 129,600 Required: Channing uses a two-stage cost allocation system. It uses direct-material costs to allocate direct-materials related overhead and direct- labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month? d. What is the total overhead allocated to product B2 next month? a Predetermined rate b. Predetermined rate C Total overhead (A1) d. Total overhead (B2) % of direct-materials cost % of direct labor cost to search o a @