Question
(LO 3) Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years
(LO 3) Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs and activities are shown below.
| Assembly | Finishing | ||||
Direct labor hours |
| 180,000 | DLH |
| 148,000 | DLH |
Machine hours |
| 380,000 | MH |
| 91,200 | MH |
Overhead costs | $ | 380,000 |
| $ | 562,400 |
|
(LO 3) Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 3.3 machine hours in the Assembly Department, and 4.5 direct labor hours and 0.4 machine hours in the Finishing Department?
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Multiple Choice
- $20.40.
- $17.10.
- $3.30.
- $17.60.
- $13.30.
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