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Jordan Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Jordan expects to incur $620,000 of overhead cost during the next fiscal

Jordan Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Jordan expects to incur $620,000 of overhead cost during the next fiscal year. Other budget information follows.

Vogue Beauty Glamour Total
Direct labor hours 3,600 5,600 10,800 20,000
Machine hours 1,300 1,750 1,950 5,000

Required

a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Product Allocation Rate x Weight of Base = Allocated Cost
Vogue x =
Beauty x =
Glamour x =
Total

b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Product Allocation Rate x Weight of Base = Allocated Cost
Vogue x = $
Beauty x =
Glamour x =
Total $

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