Sleep-Tight Manufactures Mattresses for the Hotel Industry

question 2

Multiple Choice

Sleep-Tight manufactures mattresses for the hotel industry.It has two products, Downy and Firm, and total overhead of $504,000.The company plans to manufacture 200 Downy mattresses and 300 Firm mattresses this year.In manufacturing the mattresses, the company must perform 700 material moves for the Downy and 300 for the Firm; it processes 114 purchase orders for the Downy and 90 for the Firm; and the company's employees work 2,800 direct labour hours on the Downy product and 3,500 on the Firm.Sleep-Tight's total material handling costs are $300,000 and its total purchasing costs are $204,000. Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the Downy product?

• A)$224,000
• B)$252,000
• C)$280,000
• D)$336,000

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Definitions:

Navajo Tribe

A Native American people of the Southwestern United States, known for their rich culture, including art, music, and ceremonies, and their history of resilience and sovereignty.

Sexual Division

The differentiation or allocation of roles, responsibilities, and tasks based on gender, often leading to inequalities in various social, economic, and political contexts.

Sexual Division

A distribution of roles and responsibilities based on gender, often leading to disparities in power, resources, and opportunities.

Economic Independence

The state of having sufficient personal wealth to live, without having to depend on income from some type of employment, allowing for self-sufficiency.