1. A company manufactures mattresses for the hotel industry. It has two products, Downy and Firm, and total overhead of $510000. The company plans to manufacture 210 Downy mattresses and 320 Firm mattresses this year. In manufacturing the mattresses, the company must perform 720 material moves for the Downy and 340 for the Firm; it processes 116 purchase orders for the Downy and 86 for the Firm; and the companys employees work 2400 direct labour hours on the Downy product and 3600 on the Firm. Company's total material handling costs are $307000 and its total purchasing costs are $203000. Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the Downy product?

$204000

$255000

$306000

$382500

2.

A company manufactures mattresses for the hotel industry. It has two products, Downy and Firm and total overhead of $510000. The company plans to manufacture 150 Downy mattresses and 340 Firm mattresses this year. In manufacturing the mattresses, the company must perform 710 material moves for the Downy and 290 for the Firm; it processes 115 purchase orders for the Downy and 85 for the Firm; and the companys employees work 2500 direct labour hours on the Downy product and 3500 on the Firm. Company's total material handling costs are $292000 and its total purchasing costs are $218000. Using ABC, how much overhead would be assigned to the Downy product?

$510000

$332670

$255000

$177330

$204000

$255000

$306000

$382500