Question
Cain Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include
Cain 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 $ 175,000 Factory utility cost 64,000 Factory supplies 11,000 Total overhead costs $ 250,000
Cain uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows:
Cups 200 Hours Tablecloths 600 Bottles 800 Total machine hours 1,600
Required:
a.
Allocate the budgeted overhead costs to the products. (Round "Allocation rate" to 2 decimal places.
cups allocation rate X Weight of Base = Allocated cost
tabelecloths
bottles
totals
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