Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs and activities are shown below.

Assembly Finishing

Direct labor hours 200,000 DLH 150,000 DLH

Machine hours 400,000 MH 100,000 MH

Overhead costs $ 400,000 $ 600,000

Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.5 machine hours in the Assembly Department, and 3.5 direct labor hours and 0.5 machine hours in the Finishing Department?

Multiple Choice

a. $11.00

b. $7.50

c. $6.00

d. $10.50

e. $13.00