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Exercise 4-6A Allocating overhead costs among products LO 4-3 Jordan Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles.
Exercise 4-6A Allocating overhead costs among products LO 4-3 Jordan 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 $219,400 Factory utility cost 72,000 Factory supplies. 27,000 $318,400 Total overhead costs. Jordan uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows: Cups Tablecloths Bottles Total machine hours 290 Hours 725 975 1,990 Required a. Allocate the budgeted overhead costs to the products. Product Allocation Rate x Weight of Base Allocated Cost Cups x $ 0 Tablecloths x = 0 Bottles X M 0 Total S 0
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