Assume That the Assembly Department Allocates Overhead Using a Plantwide

question 123

Multiple Choice

Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.5 machine hours in the Assembly Department, and 3.5 direct labor hours and 0.5 machine hours in the Finishing Department?

• A) $13.00.
• B) $10.50.
• C) $6.00.
• D) $11.00.
• E) $7.50.

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