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Tyson hats corporation manufactures three different models

Question: Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $480,000 of overhead cost during the next fiscal year. Other budget information follows:

Vogue Beauty Glamour Total

Direct labor hours 2,000 4,000 6,000 12,000

Machine Hours 1,200 1,400 1,400 4,000

Required: a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Product Allocation Rate Weight of Base Allocated Cost

Vogue

Beauty

Glamour

Total:

b. Use machine hours as the cost driver to compute the allocation rate and the budgested overhead cost for each product.

Product Allocation Rate Weight of Base Allocated Cost

Vogue

Beauty

Glamour

Total:

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