It is known that both products have the same direct materials and direct labor c

It is known that both products have the same direct materials and direct labor costs per case. Breeze beverage allocates factory overheads to products by using a single plantwide factory overhead rate based on direct labor cost. Additional information about the two products is as follows Dr. Kola: Requires minor process preparation and sterilization prior to processing. The ingredients are acquired locally. The formation is simple and it is easy to maintain quality. Lastly the product is sold large bulk (full truckload) orders.Tahiti Punch: Requires extensive process preparation and sterilization prior to processing. The ingredients are from Jamaica requiring complex import controls. The formulation is complex and it is thus difficult to maintain quality. Lastly the product is sold in small (less than full truckload) orders.