Transcribed Image Text: Vernon 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
Factory utility cost
Total overhead costs
Vernon uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows.
Total machine hours
a. Allocate the budgeted overhead costs to the products.
Allocation Rate x Weight of Base =