Munoz Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs require significantly more labor because of their decorative designs. The annual number of rugs made and the labor hours required to make each type of rug follow: Seasonal All-Purpose Totals Number of rugs 1, 230 2, 860 4, 090 Number of direct labor hours 118, 000 170, 000 288, 000 Required tes a. Assume that annual overhead costs total $77,760. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. b. Munoz automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,230 rugs in only 13,000 hours. Munoz continues to make the all-purpose rugs the same way as before. The number of rugs made and the labor hours required to make them after automation follow: Seasonal All-Purpose Totals Number of rugs 1, 230 2, 860 4, 090 Number of direct labor hours 13 , 000 170,000 183, 000 Overhead costs are expected to increase to $98,820 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base.Seasonal All-Purpose Totals Number of rugs 1, 230 2, 860 4, 090 Number of direct labor hours 13 , 000 170,000 183,000 Overhead costs are expected to increase to $98,820 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Required A Required B Assume that annual overhead costs total $77,760. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. (Do not round intermediate calculations.) Type of Product Allocated Cost Seasonal All purpose The most appropriate cost driver isSeasonal All-Purpose Totals Number of rugs 1, 230 2, 860 4, 090 Number of direct labor hours 13,000 170,090 183,000 Overhead costs are expected to increase to $98,820 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Required A Required B Overhead costs are expected to increase to $98,820 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. (Do not round intermediate calculations.) Type of Product Allocated Cost Seasonal All purpose