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The Antigone Company uses machine hours to apply overhead to the Machining Department and direct labor hours in the Assembly Department. The following information is
The Antigone Company uses machine hours to apply overhead to the Machining Department and direct labor hours in the Assembly Department. The following information is available for the current year:
Machining | Assembly | ||||||
Estimated overhead | $ | 420,000 | $ | 540,000 | |||
Estimated activity: | |||||||
Machine hours | 70,000 | 15,000 | |||||
Direct labor hours | 40,000 | 60,000 | |||||
Actual activity: | |||||||
Machine hours | 64,500 | 12,500 | |||||
Direct labor hours | 35,000 | 63,200 | |||||
What is the total amount of overhead assigned to the product?
$860,000
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