Airborne Industries Uses a Two-Stage Allocation Method to Assign Costs

Essay

Airborne Industries uses a two-stage allocation method to assign costs to its products.The following information has been provided for the month:
Required:
(a)Allocate the manufacturing overhead to two cost pools: machine-related and labor-related.(b)Compute the predetermined overhead rate for the two pools,using machine hours and direct labor hours as the bases.(c)Compute the total costs of production for each of the three products.