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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 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

$ 700 comma 000$700,000

$ 300 comma 000$300,000

Trail Running Shoes

440 comma 000440,000

machine hours

9 comma 0009,000

direct labor hours

Running Apparel

60 comma 00060,000

machine hours

71 comma 00071,000

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

442 comma 000442,000

hours

8 comma 5008,500

hours

Running Apparel

57 comma 00057,000

hours

72 comma 00072,000

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.

$ 250 comma 000$250,000

B.

$ 650 comma 675$650,675

C.

$ 651 comma 717$651,717

D.

$ 1 comma 000 comma 475$1,000,475

Click to select your answer.

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