What is the fully allocated cost of the widget described below? Material Raw material costs $2/pound 3 pounds produces 5 widgets each weighing 80z with one in ten being defective. (16 oz = 1 lb) Waste and scrap from the machining operations is sold for $0.5/pound It takes 15 minutes to make five widgets. You can't tell whether a widget is defective until after you produce it. Labor: Machine operators are paid $15/hr gross pay - with no benefits. State unemployment is 2%; all other rates are at the normal level Machinists only get paid when they work. Overhead: Annual overhead costs are $400,000 Overhead is allocated based on production Production: 250,000 units are produced each year