Reference no: EM132840596

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 $210,000
Factory utility cost 70,000
Factory supplies 20,000
Total overhead costs $300,000

Willey uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows:

Cups 300 Hours
Tablecloths 750
Bottles 950
Total machine hours 2,000

Problem 1: Allocate the budgeted overhead costs to the products.