Hurst Mats Hurst Mats mannfactures custom repiacement floor mats for automohiles. The floor mats are made of spun nylan on highly automated, expensive machinery. Hurst manufactures two mat styles: Plush and Deh:xe. Hurst's unionized work force makes it difficult for Eurst to compete on price. So far, it has been able to successfally compete on quality, innovative design, and delivery schedule. How ever, the leaders of Hurt's union are aggressive and are sccking adlitional woxk-related job guaran- tees. Hurst managerment wuuld like to reduce ils dependence on umonized labor Hurst's manufacturing process is overhead-diven; most of the overnead arises from the com mon machinery that produces the Plush and Deluxe floor mats. Nomenionized engineers and techni- cians maintein the equipment. Expensive lubricants and filters are required to operate the machines which require largn amounts of electricity and nanural gas. Pach mat style is produced in batches that consist of 10 mats per batch. Plush and Deluxe do not put differential demands on the equiprnent ciher than throngh the amount of machine time required to produce cach bauch of mats. The foilow ing table sammarizes the opcrating data for cach mat style: Plush Deluxe Machine minutes per batch of 10 mats Direct lahor per batch of 10 mats 12 $4 S6 Direct material per batch of 10 mats $7 S5 Namber of butches per your 9,000 14,000 Overhead is allocated to the two mat styles using a predetermined overhead rate estimated frum a flexible budget at tbe beginning of the yeas. Fixed overhead is estimated to be S680,000, and variable overhead is estimated to be S1.50 per machine minule. Management is debating whcther to use machine minutes or direct labor cost as the overhcad alucation base to allocate overhend to the two mat styles. Required: a Calculate two overhcad raies. The first uses macbine minutes as the allocation base, and the second overhcad rate uses direct labor cost as the allocation hase. Round both overhead rates to two docimuls. b. Calculate the total product cost per batch of Plush und Deluxe mats using the two over bead rates calculated in part (a). Discuss the advantages and disadvantages of using machine minutes or direct labor cost as the allocation base for assigning overhead to the two mat styles