Question
Sheffield Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $178000. The company produces 49000
Sheffield Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $178000. The company produces 49000 sweaters and 75000 jackets each year. Sweater production requires 26000 machine hours, jacket production requires 46000 machine hours. The company places raw materials orders 8 times per month, 1 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?
| $178000 |
| $208000 |
| $198700 |
| $155750 |
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