The following information was drawn from the accounting records of marlin manufacturing co.

Product 1Product 2Product 3Direct Material Cost$ 25,000$ 30,000$ 35,000Direct Labor Cost$ 30,000$ 40,000$ 50,000Direct Labor Hours1,200 hours1,800 hours2,000 hoursFactory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. Thisoverhead cost is not traceable to any particular product. Factory overhead allocated to Product 2is$10,000Allocation Base = $30,000 + $40,000 + $50,000 = $120,000 Total Direct Labor CostAllocation Rate = $30,000 Overhead Cost / $120,000 Total Direct Labor Cost = $0.25Per Direct Labor DollarAllocation Amount = $0.25 x $40,000 Direct Labor Dollars in Product 2 = $10,000 to beAllocated to Product 2The following information was drawn from the accounting records of Marlin ManufacturingCo.Product 1Product 2Product 3Direct Material Cost$ 25,000$ 30,000$ 35,000Direct Labor Cost$ 30,000$ 40,000$ 50,000Direct Labor Hours1,200 hours1,800 hours2,000 hoursFactory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. Thisoverhead cost is not traceable to any particular product. The total cost of Product 1 is$62,500Allocation Base = $30,000 + $40,000 + $50,000 = $120,000 Total Direct Labor CostAllocation Rate = $30,000 Overhead Cost / $120,000 Total Direct Labor Cost = $0.25 Per DirectLabor DollarMaterials$25,000Labor30,000Overhead ($30,000 Labor Dollars x $0.25 allocationRate)7,500Total Cost of Product 1$62,500

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