Walker 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.

Walker uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows.

Required
a. Allocate the budgeted overhead costs to the products.
b. Provide a possible explanation as to why Walker chose machine hours, instead of labor hours, as the allocationbase.

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Factory manager's salary Factory utility cost Factory supplies Total overhead costs $130,000 60,500 28,000 $218,500 Cups Tablecloths Bottles Total machine hours 420 hours 740 1,140 2,300