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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

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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 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. Machining Department $1,000,000 Finishing Department $100,000 Estimated Manufacturing Overhead by Department Trail Running Shoes Running Apparel 60,000 machine hours 40,000 machine hours 19,000 direct labor hours 31,000 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 running shoes and running apparol: Machining Department Finishing Department O A. $275,000 O B. $657,000 OC. $662,896 OD. $1,091,000 Estimated Manufacturing Overhead by $1,000,000 $100,000 Department Trail Running Shoes 60,000 machine hours 19,000 direct labor hours Running Apparel 40,000 machine hours 31,000 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 running shoes and running apparel Machining Department Finishing Department Trail Running Shoes 62,000 hours 18,500 hours Running Apparel 37,000 hours 32,000 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 A. $275,000 OB. 8657,000 OC. $662,896 OD. $1,091,000

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