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A company incurs $3939500 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000
A company incurs $3939500 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: Cost Expected use of Driver 2000 Department Ordering and Receiving Mixing Testing 50000 1500 $1260000 1325000 1354500 Production information for Goo is as follows: Department Ordering and Receiving Mixing Testing Expected use of Driver 400 20000 500 Compute the amount of overhead assigned to Goo. $1233500 $1538982 $1969750 O $984875
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