Use the following information to answer questions 4 through 7:

Company B produces two products P1 and P2, at its two departments: machining and assembly.

The accountant tries to allocate overhead costs to the two products

	Overhead	P1	P2	Total
Machining	300,000	1,200 machine hours	800 machine hours	2,000 machine hours
Assembly	150,000	600 labor hours	900 labor hours	1,500 labor hours
Total	$450,000

If the accountant decided to allocate overhead based on machine hours, what is P2s share of the total overhead costs?

$180,000

$200,000

$220,000

$240,000

If the accountant decides to allocate overhead based on labour hours, what is P1,s share of the total overhead costs?

$180,000

$200,000

$220,000

$240,000

If the accountant chooses machine hours for Machining and labor hours for Assembly as allocation bases, what is the overhead rate of Machining?

$100 per labor hour

$140 per labor hour

$120 per machine hour

$150 per machine hour

If the accountant choses machine hours for Machining and labor hours for Assembly as allocation bases, What is P1s share of the total overhead costs?

$180,000

$240,000

$270,000

$300,000