System I is the current existing cost allocation. By given the burden rate 145%, we can get:
|System I |DL |Burden |Total Costs |
|ICA |917 |1330 |2247 |
|ICB |2051 |2974 |5025 |
|Capacitor |1094 |1586 |2680 |
|Amplifier |525 |761 |1286 |
|Diode |519 |753 |1272 |

Based on the ETO manger’s idea, the testing room cost can be divided into machine-hour and direct labor. Accordingly, We use the revised burden rate 21% and machine-hour rate $80.1 to allocate the costs:
|System II |DL |Burden |Machine Hour |Machine Burden |Total |
|ICA |917 |193 |18.50 |1482 |2591 |
|ICB |2051 |431 |40.00 |3,204 |5,686 |
|Capacitor |1094 |230 |7.50 | 601 |1,924 |
|Amplifier |525 |110 |5.00 | 401 |1,036 |
|Diode |519 |109 |12.00 |961 |1,589 |

In System III which is the consultant’s proposal, we use $63.34 for main room burden rate and $112.63 for mechanical room)
|System III |DL |Burden |Main Room Hour |Mechanical Room Hour |Test Room Burden |Total |
|ICA |917 |193 |8.50 |10.00 |1,665 |2,774 |
|ICB |2051 |431