THIRD ALLOCATION $($ABSORPTION$)$ Third allocation of the factory overheads collected in the production departments of the factory may be made in two ways: output data levels or input data levels. If there are not significant differences between the end products of the department like very similar goods as the identical t$-$shirts with equal snippet pieces in Cutting department, then using output data levels like quantities, weights or lengths of the end products $($cutting process completed in Cutting department$)$ will be enough for an accurate allocation. If there are significant differences between the end products of the department like t$-$shirts and sweat shirts where the snippet pieces of fabric are quite different then it is obligatory to use a more efficient way to get more accurate allocation which may be input level data like direct material quantities, direct material cost, direct labor cost, primary cost, direct labor time period, direct machine hours etc. OUTPUT DATA LEVEL APPLICATIONS: $1.$ Manufacturing overheads of the period in a production department is $500\mathrm{.}000$$$.$ The total quantity of the production at the end of the period is $50\mathrm{.}000$ pieces and the quantity of the product coded as FG$-21$U is $6\mathrm{.}000$ pieces. Compute the manufacturing overhead of FG$-21$U using production quantities as the allocation basis $($cost driver$).2.$ Two different products are manufactured in a business and they are called as T$1$ and T$2.$ In a period $5\mathrm{.}350$ Kg$.$T$1$ and $4\mathrm{.}650$ Kg$.$ T$2$ are produced where the total of the factory overheads reached to $350\mathrm{.}500$$$.$ Compute the overhead shares of the product using their weights as the allocation basis. INPUT DATA LEVEL APPLICATIONS: $1.$ In the production process of $1\mathrm{.}000$ pieces of a new kind of leather gloves $250$m leather by $100$ $$/$m is used in the Cutting department. During the same period, the total cost of the leather used up in the same department is $135\mathrm{.}000$$ and the factory overheads total $27\mathrm{.}000$$$.$ Compute the manufacturing overhead share of the gloves using the direct material cost as the allocation basis. $2.$ The total of the periodical costs of a production department were as follows: Direct Material Costs$450\mathrm{.}000$$ Direct Labor Costs$350\mathrm{.}000$$ Manufacturing Overheads$250\mathrm{.}000$$ In the production of $5\mathrm{.}032$ pieces of a special kind of handbag, the primary costs occurred as follows: $$ Direct Material Costs$155\mathrm{.}000$$ Direct Labor Costs$140\mathrm{.}000$$ Using the Primary cost for the allocation basis of the manufacturing overheads, compute the sale price of a handbag with a profit of $40\%$ on the cost and a profit of $30\%$ on the sale price and specify which one is better for the factory.