Ritchey Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bot¬ tles. The expected overhead costs for the next fiscal year include the following.

Ritchey 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.

b. Provide a possible explanation as to why Ritchey chose machine hours, instead of labor hours, as the allocation base.

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Factory manager's salary $150,000 Factory utility cost 70,000 Factory supplies 30,000 Total overhead costs $250,000