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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

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

100,000 DLH

140,000 DLH

Machine hours

300,000 MH

60,000 MH

Overhead costs

$330,000

$450,000

Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor 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?

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