Riverview Company's budget for the coming year includes $6,400,000 for manufacturing overhead, 80,000 hours of direct labor, and 200,000 hours of machine time

If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.7 machine hours and 0.20 labor hours to complete?

Multiple Choice

• $32.00.

• $16.00.

• $31.00.

• $22.40.

If Riverview applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a unit of output which requires 0.7 machine hours and 0.70 labor hours to complete?

Multiple Choice

• $31.00.

• $3.00.

• $56.00.

• $32.00.