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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 woukd best reflect their averall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Machining Department S800,000 Finishing Departmont Estimated Manufacturing Overhead by Department Trai Running Shoes Running Apparel $100.000 350,000 machine hours 50,000 machine hours 19.000 direct labor hours 81.000 direct labor hours 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 rurning shoes and running apparel: Machining Department 252.000 hours Finishing Department 18,500 hours 82 000 hours Trail Running Shoes Running Apparel 47.000 hours 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.) O sase,625 O S728,746 $225,000 O $727 125
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