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Carve La Tienda de Postres is a small business specializing in deserts. The company makes premium cakes, anniversary cakes, and scones. The cake department and
Carve La Tienda de Postres is a small business specializing in deserts. The company makes premium cakes, anniversary cakes, and scones. The cake department and scones department incurred $88,200 and $48,000 of overhead at year-end, respectively The following information is per unit of cake and per dozen of scones: Premium Cakes Anniversary Cakes Scones (Dozen) Direct material $20 $50 $5 Direct labor $75 $10 oven hours 0.8 hours 1.5 hour 0.4 hours/ dozen $30 10 hours 0.2 hours/ dozen 2 hours labor hours units produced 3.125 1,000 9,600 dozens Suppose La Tienda de Postres would like to start using departmental rates to allocate manufacturing overhead, and it has decided to use oven hours as the allocation base for the cake department and direct labor hours for the scones department. How much manufacturing overhead would be allocated for each premium cake? $17.64 $11.25 $17.06 $2205
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