Harrison Company expects to incur $600,000 in manufacturing overhead for the coming year. The company makes two products, A and B, and it has accumulated the following budget information for the products: Product A Product B Total Number of units to be produced 10,000 5,000 15,000 Direct labor hours 25,000 5,000 30,000 Machine hours 15,000 30,000 45,000 Required: Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead to be allocated to each unit of product A. Note: Round to the nearest cent. Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead to be allocated to each unit of product A. Note: Round to the nearest cent.

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Harrison Company expects to incur $600,000 in manufacturing overhead for the coming year. The company makes two products, A and B, and it has accumulated the following budget information for the products: Required: a. Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead to be allocated to each unit of product A. Note: Round to the nearest cent. b. Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead to be allocated to each unit of product A. Note: Round to the nearest cent