Allocate the budgeted overhead costs to the products

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Problem - 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

$300,000

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

Cups

300 Hour's

Tablecloths

750

Bottles

950

Total machine hours

2,000

Required - Allocate the budgeted overhead costs to the products.

Reference no: EM133044738

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