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Rundle Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Rundle expects to incur $644,000 of overhead cost during the next fiscal
Rundle Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Rundle expects to incur $644,000 of overhead cost during the next fiscal year. Other budget information follows: Direct labor hours Machine hours Vogue 4,200 2,000 Beauty Glamour 6,200 3,600 2,200 2,240 Total 14,000 6,440 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Complete this question by entering your answers in the tabs below. Required A Required B Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Allocation Rate x Weight of Base - Allocated Cost Product Vogue Beauty Glamour Total Required A Required B > Required A Required B Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. .. Allocation Rate x Weight of Base = Allocated Cost Product Vogue Beauty Glamour Total ( Required A Required B
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