Help fix part B, Part A is correct.

Show calculations, and explanation

Franklin Rug Company makes two types of rugs, seasonal and all-purpose. Both types of rugs are handmade, but the seasonal rugs require significantly more labor because of their decorative designs. The annual number of rugs made and the labor hours required to make each type of rug follow: Number of rugs Number of direct labor hours Seasonal All-Purpose Totals 3,830 293,000 1,110 123,000 2,720 170,000 Required a. Assume that annual overhead costs total $87,900. Select the appropriate cost driver and determine the amount of overhead to b. Franklin automates the seasonal rug line, which results in a dramatic decline in labor usage and allows the company to make 1,110 allocate to each type of rug rugs in only 12,500 hours. Franklin continues to make the all-purpose rugs the same way as before. The number of rugs made and the labor hours required to make them after automation follow: Number of rugs Number of direct labor hours Seasonal All-Purpose Totals 3,830 182,500 1,110 12,500 2,720 170,000 Overhead costs are expected to increase to $109,500 as a result of the automation. Allocate the increased overhead cost to the two types of rugs using direct labor hours as the allocation base