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.

Cain uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows:

Allocate the budgeted overhead costs to the products.

Provide a possible explanation as to why Cain chose machine hours, instead of labor hours, as the allocation base.

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 manager's salary $175,000 64,000 Factory utility cost Factory supplies 11,000 $250,000 Total overhead costs 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 Bottles 800 Total machine hours 1,600