Exercise 4-5A Allocating overhead cost among products Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and mour. Tyson expects to incur $480,000 of overhead cost during the next fiscal year. her budget information follows Labs res Unava ilable Vogue BeautyGlamour Total Direct labor hours2,0004,000 6,000 12,000 lashcaros Machine hours 1,2001,400 1,400 4,000 Required Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Describe a set of circumstances where it would be more appropriate to use direct labor hours as the allocation base. Describe a set of circumstances where it would be more appropriate to use machine hours as the allocation base. a. b. c. d. 1 4-5, 2 a. Step 1. Determine the allocation rate Allocation rate TL cost to be allocated / Cost driver Allocation rate - 9Step 2. Assign the cost by multiplying the allocation rate by the weight of the base (cost driver) for each division: 10 Allocation x weight of Base- Allocated Cost 12 Vogue Beauty Glamour Total 14 15 16 17 18 b. Step 1. Determine the allocation rate 19 20 21 Allocation rate TL cost to be allocated/ Cost driver Allocation rate 23 24 25 Step 2. Assign the cost by multiplying the allocation rate by the weight of the base (cost driver) for each dnision 26 27 28 29 30 Product Vogue Beauty Glamour Total Allocation x Weight of BaseAllocated Cost 35 36 37 39 d