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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
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 Factory utility cost Factory supplies Total overhead costs $ 233,300 78,000 27,000 $ 338,300 Jordan uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows: 290 Hours 725 Cups Tablecloths Bottles Total machine hours 975 1,990 Required a. Allocate the budgeted overhead costs to the products. Allocation Rate x Weight of Base = Allocated Cost Product Cups Tablecloths Factory manager's salary Factory utility cost Factory supplies Total overhead costs $ 233,300 78,000 27,000 $338,300 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. Allocation Rate x Weight of Base = Allocated Cost Product Cups Tablecloths Bottles Total
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