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Willey Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include
Willey 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 $210,000 70,000 20,000 $300,000 Willey 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 300 Hours 750 950 2,000 Required a. Allocate the budgeted overhead costs to the products. Product Allocation Ratex Weight of Base Allocated Cost Cups Tablecloths Bottles Total 0
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