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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

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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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