Q23

Swifty manufactures mattresses for the hotel industry. It has two products, Downy and Firm, and total overhead of $507000. The company plans to manufacture 240 Downy mattresses and 290 Firm mattresses this year. In manufacturing the mattresses, the company must perform 690 material moves for the Downy and 270 for the Firm; it processes 119 purchase orders for the Downy and 92 for the Firm; and the company's employees work 2900 direct labour hours on the Downy product and 3600 on the Firm. Swifty's total material handling costs are $295000 and its total purchasing costs are $212000 Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the Downy product? $253500 O $226200 $280800 O $314690