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Chandler Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Chandler expects to incur $640,000 of overhead costs during the next fiscal
Chandler Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Chandler expects to incur $640,000 of overhead costs during the next fiscal year. Other budget information follows. |
Vogue | Beauty | Glamour | Total | |||||||||
Direct labor hours | 4,600 | 6,600 | 4,800 | 16,000 | ||||||||
Machine hours | 1,200 | 2,300 | 2,900 | 6,400 | ||||||||
Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Allocation Rate Weight of Base-Allocated Cost Product Vogue Beauty Glamour x Total b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Weight of Base l = Allocated Cost Product | Allocation Rate Vogue Beauty Glamour Total
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