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When Karen realized how small the margin was for her main product, she was aghast. She knew the company had already achicved significant direct materials

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When Karen realized how small the margin was for her main product, she was aghast. She knew the company had already achicved significant direct materials savings by partnering with its supplier. The consultant brought in last year further streamlined labor usage, bringing her to best-in-class levels for labor. The only other area to look at was overhead. Total MOH costs this coming year are estimated at \$2,024,000. Three key activities are the primary causes of total MOH, They are identified as follows, including the budgeted cost, budgeted cost driver, and budgeted cost driver quantities for each. (a) Aswuming the company uses one plant wide rate based on DL. hours to allocate MOH, calculate that rate and determine fotal allocated MOH for the main product, fRound plant-wide rote to 2 decimal pleces es. 15.25 and final answer to O decimaf phocrs es: 5,225. Totalallocated MOH for the main product 5

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