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Category > Accounting Posted 11 Aug 2017 My Price 9.00

Clemson Co

Clemson Co. incurs $700,000 of overhead costs each year in its three main departments, machining ($400,000), inspections ($200,000) and packing ($100,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Clemson%u2019s two products is as follows:
Product X Product Y
Machining hours 1,000 3,000
Inspections 100 500
Orders packed 350 650
Direct labor hours 1,700 1,800

If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?

 

  $340,000
  $168,334
  $242,308
  $350,000

 

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Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 07:08 PM My Price 9.00

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