Exercise $4-5$A $($Algo$)$ Allocating overhead cost among products LO $4-3$

Chandler Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Chandler expects to incur $$660,000$ of overhead cost during the next fiscal year. Other budget information follows.

$\backslash$table$[[,$Vogue,Beauty,Glamour,Total$],[$Direct labor hours,$5,800,7,800,16,400,30,000],[$Machine hours,$1,000,1,400,3,100,5,500]]$

Required

a$.$ Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

b$.$ Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Complete this question by entering your answers in the tabs below.

Required A

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

$\backslash$table$[[$Product$,$Allocation Rate,x$,$Weight of Base,$=,$Allocated Cost$],[$Vogue$,,x,,$$$,],[$Beauty$,x,,0,,],[$Glamour$,x,=,0,,],[$Total$,,0,,,]]$Exercise $4-5$A $($Algo$)$ Allocating overhead cost among products LO $4-3$

Chandler Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Chandler expects to incur $$660,000$ of overhead cost during the next fiscal year. Other budget information follows.

$\backslash$table$[[,$Vogue,Beauty,Glamour,Total$],[$Direct labor hours,$5,800,7,800,16,400,30,000],[$Machine hours,$1,000,1,400,3,100,5,500]]$

Required

a$.$ Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

b$.$ Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Complete this question by entering your answers in the tabs below.

Required A

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

$\backslash$table$[[$Product$,$Allocation Rate,x$,$Weight of Base,$=,$Allocated Cost$],[$Vogue$,,x,,$$$,],[$Beauty$,x,,0,,],[$Glamour$,x,=,0,,],[$Total$,,0,,,]]$