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Hardwood Floorings, Inc. has identified two activity cost pools: gluing, with an activity driver of batches processed, and pressing, with an activity driver of
Hardwood Floorings, Inc. has identified two activity cost pools: gluing, with an activity driver of batches processed, and pressing, with an activity driver of direct labor hours. Total factory overhead of $250,000 is split between the two cost pools in the following proportion: 70% gluing and 30% pressing. Hardwood produces two types of flooring: oak and maple. Last quarter, it produced 13,200 sheets of oak and 25,000 sheets of maple. Oak is produced in batch sizes of 60, and maple is produced in batch sizes of 50. A sheet of oak requires 1.5 hours of direct labor, and a sheet of maple requires 1.25 hours. What is the overhead allocation to oak for gluing? $121,528 $53,472 $122,500 $29,089
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