Jaime IncManufactures Two Products, Sweaters and Jackets

question 15

Multiple Choice

Jaime Inc.manufactures two products, sweaters and jackets.The company has estimated its overhead in the order-processing department to be $180,000.The company produces 50,000 sweaters and 80,000 jackets each year.Sweater production requires 25,000 machine hours, jacket production requires 50,000 machine hours.The company places raw materials orders 10 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets.How much of the order-processing overhead should be allocated to jackets?

• A)$90,000
• B)$120,000
• C)$110,770
• D)$144,000