Mask Company Manufactures Two Products, Pillows and Comforters

question 138

Multiple Choice

Mask Company manufactures two products, pillows and comforters.The company has estimated its overhead in the order-processing department to be $480,000.The company produces 50,000 pillows and 80,000 comforters each year.Pillow production requires 25,000 machine hours, comforter production requires 50,000 machine hours.The company places raw materials orders 10 times per month, 2 times for raw materials for pillows and the remainder for raw materials for comforters.How much of the order processing overhead should be allocated to comforters?

• A)$240,000
• B)$320,000
• C)$295,386
• D)$384,000