Big Trail Running Company Has Started to Produce Running Apparel

question 250

Multiple Choice

Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.
At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:
How much manufacturing overhead will be allocated to running apparel? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A)$249,000
• B)$247,025
• C)$1,000,500
• D)$250,000

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