The manufacturing plant is in a remote location, so they offer housing and food for its employees. The total cost is $10,000,000 per year.
Currently, it is charged to divisions based on total products manufactured. Look at the data below and apply the Acivity. Based. Costing concepts to recommend an allocation of the
production engineering costs to the four products Explain your choice of the basis for allocation.

		# of units produced	# of direct labor hours used	Production Machine Hours	Total Manufacturing Costs
Product
Product A		20,000	500	50,000	5,000,000
Product B		100,000	500	7,500	20,000,000
Product C		300,000	1,200	50,000	40,000,000
Product D		900,000	900	40,000	80,000,000