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Stuart Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year
Stuart Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following. Factory manager's salary Factory utility cost Factory supplies Total overhead costs $ 242,250 71,000 25,000 $ 338,250 Stuart uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Cups Tablecloths Bottles Total machine hours Required 300 Hours 750 1,000 2,050 Allocate the budgeted overhead costs to the products. Product Allocation Rate x Weight of Base Allocated Cost Cups x Tablecloths X Bottles Total x
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