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Munoz Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include

Munoz 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 managers salary $ 235,750
Factory utility cost 78,000
Factory supplies 24,000
Total overhead costs $ 337,750

Munoz uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows.

Cups 280 Hours
Tablecloths 700
Bottles 950
Total machine hours 1,930

Required

  1. Allocate the budgeted overhead costs to the products.

Product Allocation Rate x Weight of Base = Allocated Cost
Cups x = $
Tablecloths x =
Bottles x =
Total $

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