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Connect Secure | https://newconnect.mheducation.com/flow/connect.html Help Save & Exit Submrt my work : This Incorrect for the work you have c Exercise 4-5A Allocating overhead cost among products LO 4-3 ats Corporation manufactures three different models of hats: vogue. Beauty. and Glamour. Baird expects to Balrd H incur $280.000 of overhead cost during the next fiscal year. Other budget information follows: Direct labor ho Machine hours 2.200 4.2e0 1,3 1.400 1.30e,eee .600 14.ee0 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 3 Answer is complete but not entirely correct. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Explanation / Answer

Overhead allocation under direct labour hour method :

Overhead allocation under machine hour method :

Model Allocable cost * Weighted = Allocated cost Vogue 280000 * 2200/14000 = 44000 beauty 280000 * 4200/14000 = 84000 Glamour 280000 * 7600/14000 = 152000 Total 280000

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