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A company incurs $3893000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works
A company incurs $3893000 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 Estimated use of Driver Cost Ordering and Receiving 2000 $1240000 Mixing 50000 1300000 Testing 1500 1353000 Production information for Slime is as follows: Department Estimated use of Driver Ordering and Receiving 1600 Mixing 30000 1000 Testing Compute the amount of overhead assigned to Slime $2372183 $1946500 $2674000 $2919750
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