Number of rugs Number of direct labor hours Seasonal 1,200 11,500 All-Purpose 2,850 165,000 Totals 4,050 176,500 Overhead costs are expected to increase to $98,840 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 $80,640. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. (Do not round intermediate calculations.) Allocated Cost Type of Product Seasonal All purpose The most appropriate cost driver is Required allocate to each type of rug. b. Perez automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,200 rugs in only 11,500 hours. Perez 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: aber of rugs Seasonal 1,200 All-Purpose 2,850 Totals 4.050 Number of direct labor hours 11.500 165,000 178,500 Overhead costs are expected to increase to $98,840 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 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