Alan Collins (V2.1):(Adapted with permission of CMA Canada)Alan Collins is a for

Alan Collins (V2.1):(Adapted with permission of CMA Canada)Alan Collins is a forensic accountant and has been hired by the Widget Department of theGlobal Corporation. A disgruntled cost accountant in the administrative area within the WidgetDepartment broke a water main that destroyed certain computer files. Management has beengathering data from whatever source possible. It is hoped that Alans work can be used as atemplate for staff in the future.Here is what management has passed on to Alan:Each widget requires a standard direct labor input of 5.75 hours per unit. Total (combinedvariable and fixed) overhead is applied to production using a standard (predetermined) amountper direct labor hour. The balance of the Factory Overhead Control Account is written off toCost of Goods Sold at the end of every month.