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Solomon Rug Company makes two types of rugs, seasonal and all purpose. Both types of rugs are handmade, but the seasonalus require significantly more labor

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Solomon Rug Company makes two types of rugs, seasonal and all purpose. Both types of rugs are handmade, but the seasonalus 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 2,77 4,000 Number of direct labor hours 115,000 163,00 283,000 . Required a. Assume that annual overhead costs total $84.900 Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug b. Solomon automates the seasonal rugline, which results in a dramatic decine in labor usage and allows the company to make 1.230 rugs in only 11.500 hours. Solomon 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 Number of direct labor hours Seasonal All-Purpose Totals 1.230 2,770 4,000 11,500 168,000 179,500 Overhead costs are expected to increase to $107.700 as a result of the automation Allocate the increased overhead cost to the tivo types of rugs using direct labor hours as the allocation base Complete this question by entering your answers in the tabs below. Required Required Assume that annual overhead costs total $14.900 Select the appropriate cost driver and determine the amount of verhad to allocate to each type of rug (Do not round intermediate actions) Type of product Allocated at Overhead costs are expected to increase to $107700 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 $84,900. 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) 11,500 168,000 . 179,500 Overhead costs are expected to increase to $107,700 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 Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base. (De not round Intermediate calculations.) Allocated Cost Type of Product Seasonal All purpose

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