Question
Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel
Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year:
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Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.
At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:
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How much manufacturing overhead will be allocated to the trail running shoes? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
A.
$225,000
B.
$900,000
C.
$482,500
D.
$484,054
Data Table Trail Running Shoes Running Apparel Machining Department 162,000 hours 37,000 hours Finishing Department 15,500 hours 65,000 hours PrintDone Machining Department Finishing Department $400,000 Estimated Manufacturing Overhead by Department $500,000 rail Running Shoes Running Apparel 160,000 machine hours 16,000 direct labor hours 40,000 machine hours 64,000 direct labor hours Print DoneStep by Step Solution
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