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 manager's salary $ 269,000 Factory utility cost Factory supplies $4124,000 $209,600 Total overhead costs $602,600 Cain uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows: Cups Tablecloths Bottles 510 Hours 850 1,260 Total machine hours 2,620 Required: Allocate the budgeted overhead costs to the products. What is the allocated rate, weight base for the cups, tablecloths, and bottles?

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 manager's salary $ 269,000 Factory utility cost Factory supplies $4124,000 $209,600 Total overhead costs $602,600 Cain uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows: Cups Tablecloths Bottles 510 Hours 850 1,260 Total machine hours 2,620 Required: Allocate the budgeted overhead costs to the products. What is the allocated rate, weight base for the cups, tablecloths, and bottles?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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