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Rooney Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs Tequire significantly more labor

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Rooney Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs Tequire 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 Number of rugs number of direct labor hours sont 1,270 115,000 All Purpose 2,740 173,000 Totals 4,010 280,cee Required 2. Assume that annual overhead costs total $63,360. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug b. Rooney automates the seasonal rug line, which results in a dramatie decline in labor usage and allows the company to make 1.270 rugs in only 11500 hours. Rooney 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 number of rugs amber of direct labor hours Seasonal 1,270 11,500 All-Purpose 2,740 173,000 Total 4,010 104,50e Overhead costs are expected to increase to 581.180 0 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. Activar W Number of rugs Nunber of direct labor hours Seasonal 1,27e 11,560 All Purpose 2,740 173,000 Total 4,010 184,500 Overhead costs are expected to increase to $81,180 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 $63,360. 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 TY of Product Seasonal All purpose The most appropriate cost driver is number of direct labor hours Required B > 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.) O Product Allocated Cost Seasonal All purpose

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