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Sleep-Tight manufactures mattresses for the hotel industry. It has two products, Downy and Firm, and a total overhead of $504,000. The company plans to
Sleep-Tight manufactures mattresses for the hotel industry. It has two products, Downy and Firm, and a total overhead of $504,000. The company plans to manufacture 200 Downy mattresses and 300 Firm mattresses this year. In manufacturing the mattresses, the company must perform: Material Moves Processes Purchase order Direct Labor Hr Downy 700 114 2800 Firm 300 90 3500 Sleep-Tight's total material handling costs are $300,000, and its total purchasing costs are $204,000. Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the Downy product? O a. $252,000 O b. $336,000 O c. $224,000 O d. $280,000
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