Bag Ladies,Inc Calculate the Amount of Overhead to Be Allocated to Totes

question 74

Multiple Choice

Bag Ladies,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $25,500.Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 40 \\\hline \text { Direct labor cost per unit } & \$ 53 & \$ 61 \\\hline \text { Number of units } & 530 & 360 \\\hline\end{array}$$ Calculate the amount of overhead to be allocated to Totes.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

• A)$481
• B)$327
• C)$11,189
• D)$14,312

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