Allocating overhead costs among products Willey 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: Factory manager's salary Factory utility cost Factory supplies Total overhead costs $210,000 70,000 20.000 $300,000 Willey uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows: 300 Hours 750 Cups Tablecloths Bottles Total machine hours 950 2,000 Required a. Allocate the budgeted overhead costs to the products, b. Provide a possible explanation as to why Willey chose machine hours, instead of labor hours, as the allocation base