Borsetta,Inc Calculate the Amount of Overhead to Be Allocated to Satchels,if

question 248

Multiple Choice

Borsetta,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 $25,500.Additional estimated information is given below. $$\begin{array} { | l | l | l | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 30 & \$ 43 \\\hline \text { Direct labor cost per unit } & \$ 54 & \$ 64 \\\hline \text { Number of units } & 520 & \$ 70 \\\hline\end{array}$$ Calculate the amount of overhead to be allocated to Satchels,if the actual units produced and direct labor costs equal the estimated amounts.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

• A) $472
• B) $13,835
• C) $11,667
• D) $23,680

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Definitions:

Psychodynamic Perspective

A theory in psychology which posits that unconscious psychological processes shape feelings, thoughts, and behaviors.

Electra Complex

The daughter’s love for her father and wish for her mother’s death; attributed to Carl Jung.

Oedipus Complex

The male child’s love for the mother and wish for the father’s death during the phallic stage.

Anal-retentive Personality

A term derived from Freudian theory indicating a person who is excessively orderly, perfectionistic, and rigid, often stemming from early toilet training experiences.