Windsor Co If Traditional Costing Based on Direct Labor Hours Is Used

question 115

Multiple Choice

Windsor Co.incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000) , inspections ($300,000) and packing ($150,000) .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 Windsor's two products is as follows: $$\begin{array} { l c c } & \text { Product } & \text { ProductY } \\\text { Machining hours } & 1,000 & 3,000 \\\text { Inspections } & 100 & 500 \\\text { Orders packed } & 350 & 650 \\\text { Direct labor hours } & 1,700 & 1,800\end{array}$$ If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?

• A)$252,501
• B)$363,462
• C)$510,000
• D)$525,000

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Definitions:

Leadership

The process of influencing others to achieve goals through verbal and nonverbal messages.

Nonverbal

Relating to communication that occurs through means other than words, including gestures, facial expressions, and body language.

Listening

The active process of receiving, constructing meaning from, and responding to spoken and/or nonverbal messages.

Interpreting

The process of understanding and explaining the meaning of information or data, often within the context of language translation or data analysis.