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E 3-3 Allocating Batch-Level and Product-Line Manufacturing Overhead Costs Giles Company has two divisions. Gross...

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E 3-3 Allocating Batch-Level and Product-Line Manufacturing Overhead Costs Giles Company has two divisions. Gross margin computations for these two divisions for 202 are as follows: 2. By how much do the profits of the two divisions differ between the direct labor cost allocation method and ABC allocation? Assuming that allocating manufacturing overhead using the ABC method is more correct, what can you conclude from this difference? Giles has determined that its total manufacturing overhead cost of $1,000,000 is a mixture of batch-level costs and product-line costs. Giles has assembled the following information conceming the manufacturing overhead costs, the annual number of production batches in each division, and the number of product lines in each division: 1. Prepare gross margin calculations for Giles' two divisions assuming that manufacturing overhead is allocated based on the number of batches and number of product lines

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