Question
Benson Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include
Benson 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 managers salary $ 228,350 Factory utility cost 79,000 Factory supplies 21,000 Total overhead costs $ 328,350 Benson uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Cups 290 Hours Tablecloths 725 Bottles 975 Total machine hours 1,990 Required Allocate the budgeted overhead costs to the products.
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