Revenue Direct material Direct labor Overhead: Material handling overhead Fabrication overhead Plastic $ 650,000 Leather $670,000 350,000 230,000 430,000 210,000 Total $ 1,320,000 780,000 440,000 343,200 558,800 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d Total overhead (leather) 20 % of direct-materials cost % of direct-labor cost