Reference no: EM132665213

Franklin Hats Corporation manufactures three different models of hats:

Vogue, Beauty, and Glamour. Franklin expects to incur $612,000 of overhead cost during the next fiscal year. Other budget information follows:

                                 Vogue                Beauty              Glamour              Total

Direct labor hours       3,200             5,200                9,600            18,000

Machine hours             1,100            2,100               2,920               6,120

Required

Problem 1: Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Problem 2: Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.