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Lewis, Inc. manufactures recliners for the furnishing industry It has two products, the Heater and the Massager, and total overhead is $3.360,000. The company plans
Lewis, Inc. manufactures recliners for the furnishing industry It has two products, the Heater and the Massager, and total overhead is $3.360,000. The company plans to manufacture 300 Heaters and 200 Massagers this year. In manufacturing the recliners, the company must perform 500 material moves for the Heater and so for the Massager, it processes 900 purchase orders for the Heater and 700 for the Massagers and the company's employees work 1,500 direct labor hours on the Heater product and 3,300 on the Massager. Lewis's total material handling costs are $2,100,000 and its total processing costs are $1,200,000. How much is the ABC overhead rate per cost driver for the processing activity cost pool? $700 per purchase order 5757.8 per purchase order O $2170 per purchase order $7875 per purchase order
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