Reference no: EM131744418
Question: Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $480,000 of overhead cost during the next fiscal year. Other budget information follows:
Vogue Beauty Glamour Total
Direct labor hours 2,000 4,000 6,000 12,000
Machine Hours 1,200 1,400 1,400 4,000
Required: a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.
Product Allocation Rate Weight of Base Allocated Cost
Vogue
Beauty
Glamour
Total:
b. Use machine hours as the cost driver to compute the allocation rate and the budgested overhead cost for each product.
Product Allocation Rate Weight of Base Allocated Cost
Vogue
Beauty
Glamour
Total:
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