Question 17

Swifty Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $182000. The company produces 50000 sweaters and 77000 jackets each year. Sweater production requires 21000 machine hours, jacket production requires 54000 machine hours. The company places raw materials orders 8 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets?

$91000

$121000

$111700

$136500