Chandler Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Chandler expects to incur $660,000 of overhead cost during the next fiscal year. Other budget information follows.

	Vogue			Beauty			Glamour			Total
Direct labor hours		5,800			7,800			16,400			30,000
Machine hours		1,000			1,400			3,100			5,500

Required:

a.

Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Product	Allocation Rate	x	Weight of Base	=	Allocated Cost
Vogue		x		=
Beauty		x		=
Glamour		x		=
Total