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4 Gibson Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year
4 Gibson Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following. 10 points Factory manager's salary Factory utility cost Factory supplies Total overhead costs $218,250 80,000 29,000 $327,250 eBook Gibson uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Print Cups Tablecloths Bottles Total machine hours 270 Hours 675 925 1,870 References Required a. Allocate the budgeted overhead costs to the products. Product Allocation Rate x Weight of Base = Allocated Cost Cups Tablecloths x x Bottles Total
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