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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 the following:
Factory manager's salary
$210,000
Factory utility cost
70,000
Factory supplies
20,000
Total overhead costs
8300,000
Willey uses machine hours as the cost driver to allocate overhead costs. Cudgeled machine hours for the products are as follows:
Cups 300 Hours
Tablecloths 750
Bottles 950
Total machine hours 2,000
Question 1: Determine and Allocate the budgeted overhead costs to the products.
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