TB MC Qu. 17-118 (Algo) Angler Industries produces a product...

Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs and activities are shown below.

	Assembly		Finishing
Direct labor hours	120,000	DLH	142,000	DLH
Machine hours	320,000	MH	32,000	MH
Overhead costs	$ 320,000		$ 454,400

Assume that Angler Industries allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.70 machine hours in the Assembly Department, and 3.50 direct labor hours and 0.8 machine hours in the Finishing Department?

Multiple Choice

• $13.90.

• $11.20.

• $7.70.

• $11.70.

• $8.00.