Finch Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs require significantly more labor because of their decorative designs. The annual number of rugs made and the labor hours required to make each type of rug follow: Seasonal All-Purpose 2,890 Totals Number of rugs 1,280 4,170 Number of direct labor hours 121,000 168,000 289,000 Required a. Assume that annual overhead costs total $83,810. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. b. Finch automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,280 rugs in only 13,000 hours. Finch continues to make the all-purpose rugs the same way as before. The number of rugs made and the labor hours required to make them after automation follow: Seasonal All-Purpose 2,890 168, 000 Totals Number of rugs Number of direct labor hours 1,280 13,000 4,170 181,000 Overhead costs are expected to increase to $104,980 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Required A Required B Assume that annual overhead costs total $83,810. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. (Do not round intermediate calculations.) Allocated Cost Type of Product Seasonal All purpose The most appropriate cost driver is Required A Required B> Finch Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs require significantly more labor because of their decorative designs. The annual number of rugs made and the labor hours required to make each type of rug follow: Seasonal All-Purpose 2,890 168, 000 Totals 4,170 289,000 Number of rugs 1,280 Number of direct labor hours 121, 000 Required a. Assume that annual overhead costs total $83,810. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. b. Finch automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,280 rugs in only 13,000 hours. Finch continues to make the all-purpose rugs the same way as before. The number of rugs made and the labor hours required to make them after automation follow: ces Seasonal All-Purpose 2,890 168, e00 Totals Number of rugs Number of direct labor hours 1,280 13,000 4,170 181,eee Overhead costs are expected to increase to $104,980 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. (Do not round Intermediate calculations.) Allocated Cost Type of Product Seasonal All purpose < Required A Required > Finch Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs require significantly more labor because of their decorative designs. The annual number of rugs made and the labor hours required to make each type of rug follow: Seasonal All-Purpose 2,890 Totals Number of rugs 1,280 4,170 Number of direct labor hours 121,000 168,000 289,000 Required a. Assume that annual overhead costs total $83,810. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. b. Finch automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,280 rugs in only 13,000 hours. Finch continues to make the all-purpose rugs the same way as before. The number of rugs made and the labor hours required to make them after automation follow: Seasonal All-Purpose 2,890 168, 000 Totals Number of rugs Number of direct labor hours 1,280 13,000 4,170 181,000 Overhead costs are expected to increase to $104,980 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Required A Required B Assume that annual overhead costs total $83,810. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. (Do not round intermediate calculations.) Allocated Cost Type of Product Seasonal All purpose The most appropriate cost driver is Required A Required B> Finch Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs require significantly more labor because of their decorative designs. The annual number of rugs made and the labor hours required to make each type of rug follow: Seasonal All-Purpose 2,890 168, 000 Totals 4,170 289,000 Number of rugs 1,280 Number of direct labor hours 121, 000 Required a. Assume that annual overhead costs total $83,810. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. b. Finch automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,280 rugs in only 13,000 hours. Finch continues to make the all-purpose rugs the same way as before. The number of rugs made and the labor hours required to make them after automation follow: ces Seasonal All-Purpose 2,890 168, e00 Totals Number of rugs Number of direct labor hours 1,280 13,000 4,170 181,eee Overhead costs are expected to increase to $104,980 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. (Do not round Intermediate calculations.) Allocated Cost Type of Product Seasonal All purpose < Required A Required >