Transcribed Image Text: Vernon Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles

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
Factory supplies
$227,100
71,000
30,000
Total overhead costs
$328,100
Vernon uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows.
Cups
Tablecloths
280 Hours
700
Bottles
950
Total machine hours
1,930
Required
a. Allocate the budgeted overhead costs to the products.
Product
Allocation Rate x Weight of Base =
Allocated Cost
Cups
Tablecloths
Bottles
Total

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