Cain 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 managers salary $278,000
Factory utility cost $129,000
Factory supplies $297,700
Total Overhead costs $704,700
Cain uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows:
Cups 560 Hours
Tablecloths 810
Bottles 1240
Total machine hours 2610
Allocate the budgeted overhead costs to the products
Product Allocation Rate X Weight of Base = Allocated Cost
Cups X =
Tablecloths X =
Bottles X =
Total