Homework 9. Chapter 48.33/100 www.se Help 2 Munoz Sporting Equipment manufactures bate bats and tennis rackets Department produces the baseball bats, and Department produces the tennis rackets Munor currently uses plantwide allocation to locate its overhead to al products Direct labor com the allocation base. The rate uses 150 percent of direct labor cost Last year, revenue, materials and direct lobor were as follow Baseball Tentacats Sales revenue $1,600,000 395,000 Direct Labor 350,000 125.000 Direct materials 554,000 206,000 5/20 ded Required: a compute the profit for each product using plantwide allocation b. Maria, the manager of Department was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used. Department would have had a rate of 100 percent of direct labor cost and Department T would have had a rate of 250 percent of direct labor cost. Recompute the profits for each product using each department's allocation rate based on direct labor cost Us poden Pro Datuit Hats 2.310.000 $3.510.00 5 6060000 28.000 11 Using departments to ste