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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 woul best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year Estimated Manufacturing Overhead by Department Trail Running Shoes Running Apparel Trail Running Shoes Running Apparel Machining Department $800,000 OA. $900,900 OB. $781,700 OC. $225,000 OD. $782,145 460,000 machine hours 40,000 machine hours Finishing Department $100,000 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: Machining Department 462,000 hours 37,000 hours Einishing Department 8,500 hours 12.000 hours How much manufacturing overhead will be allocated to the trail running shoes? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) 9,000 direct labor hours 11,000 direct labor hours

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 woul best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year Estimated Manufacturing Overhead by Department Trail Running Shoes Running Apparel Trail Running Shoes Running Apparel Machining Department $800,000 OA. $900,900 OB. $781,700 OC. $225,000 OD. $782,145 460,000 machine hours 40,000 machine hours Finishing Department $100,000 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: Machining Department 462,000 hours 37,000 hours Einishing Department 8,500 hours 12.000 hours How much manufacturing overhead will be allocated to the trail running shoes? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) 9,000 direct labor hours 11,000 direct labor hours

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. Estimated Manufacturing Overhead by Department Trail Running Shoes Running Apparel Trail Running Shoes Running Apparel Machining Department $800,000 OA. $900,900 OB. $781,700 OC. $225,000 OD. $782,145 460,000 machine hours 40,000 machine hours Finishing Department $100,000 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 Machining Department 462,000 hours 37,000 hours Einishing Department 8,500 hours 12.000 hours How much manufacturing overhead will be allocated to the trail running shoes? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) 9,000 direct labor hours 11,000 direct labor hours
Transcribed Image Text: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. Estimated Manufacturing Overhead by Department Trail Running Shoes Running Apparel Trail Running Shoes Running Apparel Machining Department $800,000 OA. $900,900 OB. $781,700 OC. $225,000 OD. $782,145 460,000 machine hours 40,000 machine hours Finishing Department $100,000 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 Machining Department 462,000 hours 37,000 hours Einishing Department 8,500 hours 12.000 hours How much manufacturing overhead will be allocated to the trail running shoes? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) 9,000 direct labor hours 11,000 direct labor hours
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