Question 3.

You are required to calculate overhead cost to products.

Leather Jackets Requires 300 new design resources. 30,000 units ordered with 500 separate orders. Each jacket requires 50 minutes of machine time for a total of 15,000 machine-hours. Denim Jeans Requires new design resources. 400 separate orders. 200 custom designs prepared. 1,000 jeans, requiring 2 machine-hours each for a total of 2,000 machine-hours. Activity rates are: Customer order $ 250 per order, product design $400 per design and order size 30 per machine hours.