Question
Borsetta, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the
Borsetta, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below.
Totes Satchels
Direct materials cost per unit $31 $42
Direct labor cost per unit $54 $64
Number of units 520 370
Calculate the amount of overhead to be allocated toSatchels, if the actual units produced and direct labor costs equal the estimated amounts.(Round any percentages to two decimal places and your final answer to the nearestdollar.)
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