Walton Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs 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: Required a. Assume that annual overhead costs total $82,650. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. b. Walton automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,100 rugs in only 11,500 hours. Walton 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: Overhead costs are expected to increase to $101,790 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. Overhead costs are expected to increase to $101,790 as a result of the automation. Allocate the increased overhead cost to the tw types of rugs using direct labor hours as the allocation base. Complete this question by entering your answers in the tabs below. Assume that annual overhead costs total $82,650. Select the appropriate cost driver and determine the amount of overhead to allocate to each type of rug. (Do not round intermediate calculations.) Overhead costs are expected to increase to $101,790 as a result of the automation. Allocate the increased overhead cost to the types of rugs using direct labor hours as the allocation base: Complete this question by entering your answers in the tabs below. Overhead costs are expected to increase to $101,790 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. (Do not round intermediate calculations.)