Berglund Inc. allocates its manufacturing overhead costs to products using a different cost driver for each of its departments. The Parts Department allocates manufacturing overhead based on machine hours, and the Painting Department allocates overhead costs based on direct labor hours. The following estimates were provided for the coming year:
tableParts,PaintingtableDirect laborhourstableMachinehourstableDirect laborcostManufacturingtableoverheadcosts$$$
