Please answer the bold one in 500words. I will thumbs up

Discuss other options for the activity base besides the DL hours currently used and the importance of the MOH allocation. Is this the best activity base for this company? Do multiple product lines impact the MOH allocation? How? Think about adding the additional product line for the bookshelves

Please explain briefly

• The materials include $1,600 for the wood and other materials on a per job basis.
• It requires 20 hours of labor on average for a custom bathroom. The hourly rate is $15.
• The sales price will be set at a markup of 75%.
• The company estimates that it will have 20,000 direct labor hours in total for the bathroom cabinets.
• It assumes 1,000 units are sold on average per year.

A breakdown of estimated yearly costs related to the bathroom cabinets follows:

	Salaries- office & administrative				$ 450,000
	Salaries for factory supervisors, janitor and security				$ 180,000
	Office Rent				$ 125,000
	Factory Rent				$ 20,000
	Office Utilities and Misc office expenses(based on units sold)				$ 10,000
	SalesTravel(based on units sold)				$ 24,000
	Insurance - office				$ 12,000
	Depreciation - office equipment				$ 40,000
	Depreciation for factory equipment				$ 70,000
	Advertising				$ 20,000
	Sales commissions(based on units sold)				$ 45,000
	Factory Property taxes				$ 10,000
	Maintenance for factory equipment				$ 80,000