Question
Magglio Company produces two products, Bop and Mop in a small manufacturing plant which had total manufacturing overhead of $52,000 in June and used 800
Magglio Company produces two products, Bop and Mop in a small manufacturing plant which had total manufacturing overhead of $52,000 in June and used 800 direct labor hours. The factory has two departments, Preparation, which incurred $32,000 of manufacturing overhead, and Processing which incurred $20,000 of manufacturing overhead. Preparation used 500 hours of direct labor and Processing used 200 machine hours. During June, 400 direct labor hours were used in making 100 units of Bop, and 400 were used in making 100 units of Mop. If Magglio uses a plant wide rate based on direct labor hours to assign manufacturing costs to products, the total manufacturing overhead assigned to each unit of Mop and Bop in June were:
Select one:
A. $260 for Bop and $260 for Mop
B. $130 for Bop and $130 for Mop
C. $35,000 for Bop and $25,000 for Mop
D. $26,000 for Bop and $26,000 for Mop
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