Thornton 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 Thornton 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 a. Allocate the budgeted overhead costs to the products. Cups Tablecloths Product Allocation Rate x Weight of Base Bottles Total $241,300 74,000 23,000 $338,300 X: X 290 Hours 725 975 1,990 X = Allocated Cost = $ 0 0 0 0 = 11 B $

Thornton 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. Thornton uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows Required a. Allocate the budgeted overhead costs to the products