1. Procter & Gamble manufactures consumer goods using process costing. In January 2030, the company incurs costs of $120 million, including the following overhead expenses:
   • Administration: $20 million
   • Selling: $25 million
   • Factory: $50 million
   • Distribution: $15 million

The labor costs incurred are $30 million, with $20 million classified as direct labor.

Required:

• Calculate the total manufacturing costs for Procter & Gamble.
• Allocate overhead costs to the production departments.
• Determine the overhead rate based on direct labor hours.
• Analyze the impact of overhead allocation on unit costs.
• Prepare a process costing statement for Procter & Gamble.