Question
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below.
Assembly Finishing
Direct labor hours 190.000 DLH
Machine hours 390,000 MH
Overhead costs $ 390,000
149,000 DLH
95,550
MH
$ 581,100
Assume that Angler Industries 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 3.40 machine hours in the Assembly Department, and 4.00 direct labor hours and 0.6 machine hours in the Finishing Department?
O $19.00.
O $15.60.
O $8.00.
O $16.10.
O $11.70.
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