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Franklin Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year
Franklin 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 $245,250 Factory utility cost 78,000 Factory supplies 25,000 Total overhead costs $348,250 Franklin uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Cups Tablecloths Bottles 290 Hours 725 975 Total machine hours 1,990 Required a. Allocate the budgeted overhead costs to the products.
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