ECONOMICS

Detailed explanation-1: -Allocate Overhead Costs Apply the overhead by multiplying the overhead allocation rate by the number of direct labor hours needed to make each product. If product X requires 50 hours, you must allocate $166.5 worth of overhead (50 hours x $3.33) to this product.

Detailed explanation-2: -Glue, nails, rivets, and other such items are examples of indirect materials. To calculate the unit cost of indirect materials, the total cost is divided by the number of units manufactured.

Detailed explanation-3: -Indirect cost allocation is an accounting function by which estimates are made to distribute indirect costs to programs or functions, in order to approximate their full cost.