Raw Materials Inventory, beginning balance

$$33,000$

Work in Process Inventory, beginning balance

$48,000$

Finished Goods Inventory, beginning balance

$27,000$

Raw Materials Purchases

$54,000$

Factory electricity

$10,000$

Total labor used in production

$114,000$

Indirect labor used in production

$56,000$

Depreciation on factory equipment

$35,000$

Insurance on factory building

$8,000$

Raw Materials used in production

$41,000$

Raw Materials directly traceable to products

$32,000$

Raw Materials indirectly linked to products

$9,000$

Cost of Goods Manufactured

$200,000$

Cost of Goods Sold

$210,000$

Frick & Frack, Inc. reported the following for the month just ended:

Management estimates that manufacturing overhead cost will be $$450,000.$

If the $1$st letter of your last name begins with:

A thru L

M thru Z

Then your allocation base is:

Direct Labor hours

Machine hours

Estimated

$150,000$

$500,000$

Actual

$80,000$

$200,000$

Questions:

$1.$ Why aren't common fixed costs allocated to segments under the contribution approach?