Exercise 5: Multiple Cost Pools Green Apple Company makes two products, yPhone and ypad. yPhone requires $150 of DM per unit and $10 of DL per unit. yPad requires $200 of DM per unit and $30 of DL per unit. There is no variable overhead cost. Green Apple produces 2,000 yPhones and 1,000 yPads. Its fixed overhead costs are: Factory Supervisor's Salary $200,000 Factory Rent $60,000 Question: Allocate the fixed overhead costs between yPhone and yPad, using two cost pools: (1) Supervisor's salary, allocated based on DL$, (2) Rent, allocated based on number of units. Exercise 4: Cost Allocation You have 2 product lines, Basic and Premium. You produce 400 units of Basic and 300 units of Premium. Basic uses $5 of DL per unit, Premium uses $10 of DL per unit. Total indirect costs (shared by Basic and Premium) are $10,000. Question : Allocate the indirect costs between Basic and Premium, using DL$ as the allocation base (cost driver)