Select the basis for manufacturing cost allocation. (Obj. 3).

The Fun Toy Corporation allocates the General Factory Department overhead on the basis of direct labor costs incurred by each producing department in the factory. The Cutting Department incurred

$7,020 in direct labor costs, the Shaping Department incurred $4,680 in direct labor costs, and the Assembly Department incurred $1 1,700 in direct labor costs. Determine the amount that should be allocated to each producing department if the General Factory Department incurs overhead costs of $68,400.

 LO.1