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A company incurs $3800000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000
A company incurs $3800000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of Goo and 600000 drums of Slime. The following data are available: Department Ordering and Receiving Mixing Testing Expected use of Driver 2000 50000 Cost $1200000 1250000 1350000 1500 Production information for Slime is as follows: Department Ordering and Receiving Mixing Testing Expected use of Driver 1600 30000 1000 Compute the amount of overhead assigned to Slime. O $2315514 O $2610000 O $2850000 O $1900000
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