23)

Sheridan manufactures mattresses for the hotel industry. It has two products, Downy and Firm, and total overhead of $504000. The company plans to manufacture 230 Downy mattresses and 320 Firm mattresses this year. In manufacturing the mattresses, the company must perform 670 material moves for the Downy and 260 for the Firm; it processes 112 purchase orders for the Downy and 94 for the Firm; and the company's employees work 2700 direct labour hours on the Downy product and 3300 on the Firm. Sheridan's total material handling costs are $303000 and its total purchasing costs are $201000. Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the Downy product? $277200 O $226800 $308000 $252000