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Walker Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include
Walker 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 managers salary | $130,000 |
Factory utility cost | 60,500 |
Factory supplies | 28,000 |
Total overhead costs | $218,500 |
Walker uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows:
Cups | 420 hours |
Tablecloths | 740 hours |
Bottles | 1,140 hours |
Total machine hours | 2,300 hours |
What is the amount allocated to the cups?
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