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A company has two manufacturing overhead activities: mixing and packaging. The cost driver for mixing is direct labor hours and the cost driver for
A company has two manufacturing overhead activities: mixing and packaging. The cost driver for mixing is direct labor hours and the cost driver for packaging is units packaged. The following estimates are assumed for next year: Manufacturing overhead cost related to mixing: $100,000 Manufacturing overhead cost related to packaging: $200,000 Direct labor hours: 100,000 hours Units packaged: 400,000 units Under ABC, what is the amount of manufacturing overhead related to mixing that should be allocated to an order that requires 2 direct labor hours to produce 10 units of product? $2 52 $3 $6 O $7
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