Bag Ladies,Inc Calculate the Amount of Overhead to Be Allocated to Totes

question 177

Multiple Choice

Bag Ladies,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $24,500.Additional estimated information is given below. $$\begin{array} { | l | l | l | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 31 & \$ 41 \\\hline \text { Direct labor cost per unit } & \$ 53 & \$ 63 \\\hline \text { Number of units } & 500 & \$ 60 \\\hline\end{array}$$ Calculate the amount of overhead to be allocated to Totes.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

• A) $462
• B) $333
• C) $11,299
• D) $13,202

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Definitions:

Finance Charges

Fees and interest charged on borrowed money, typically associated with loans, credit cards, and financed purchases.

Credit Card Company

A financial institution that issues credit cards, allowing cardholders to purchase goods and services on credit.

Installment Plan

A method of payment of a purchase or services over a period of time.

Finance Charge

A fee representing the cost of credit or the cost of borrowing, including interest and other associated expenses.