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	Finishing Department
Estimated Manufacturing Overhead by Department	$500,000	$400,000
Trail Running Shoes	160,000 machine hours	16,000 direct labor hours
Running Apparel	40,000 machine hours	64,000 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	162,000 hours	15,500 hours
Running Apparel	37,000 hours	65,000 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.)

A) $482,500

B) $484,054

C) $900,000

D) $225,000

OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system.

Activity	Est. Indirect Activity Costs	Allocation base	Cost allocation rate
Materials	$80,000	Material moves	$3.00/move
Assembling	$246,000	Direct labor hours	$8.00/dir. labor hour
Packaging	$70,000	# of finished units	$1.00/finished unit

The following parts were produced in October with the following information:

Part	# Produced	Materials Costs	# Moves	Dir. Labor Hrs.
A	2350	$2700	1000	250
B	3000	$8500	1900	225
C	4750	$7000	2500	1500

Total manufacturing overhead costs for part A is

A) $7350

B) $5000

C) $10,050

D) $7700

What will the use of departmental overhead rates generally result in?

A) The use of a separate cost allocation base for each department in the factory

B) The use of a single cost allocation base

C) The use of a single overhead cost pool for the factory

D) The use of separate cost allocation base for each activity in the factory