Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $480,000 of overhead cost during the next fiscal year. Other budget information follows:

		Vogue		Beauty		Glamour		Total
Direct labor hours		2,000		4,000		6,000		12,000
Machine hours		1,200		1,400		1,400		4,000

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.