Question
Bag Ladies, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as
Bag Ladies, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $24,500. Additional estimated information is given below.
| Totes | Satchels |
Direct materials cost per unit | $31 | $41 |
Direct labor cost per unit | $53 | $63 |
Number of units | 500 | 360 |
Calculate the amount of overhead to be allocated to Totes. (Round any percentages to two decimal places and your final answer to the nearest dollar.)
a | $11,299 |
b | $462 |
c | $13,202 |
d | $333 |
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