Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below. Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours  Toy Number of units  Machine hours (MH) Direct labor hours (DLH) Bear 2,000 8,000 MH 700 DLH Puppy 3,000 5,000 MH  1,000 DLH Bunny 5,000 4,000 MH 2,300 DLH The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Puppy during the year? Group of answer choices $8,400 $60,000 $96,000 $48,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below.

Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours
 Toy Number of units  Machine hours (MH) Direct labor hours (DLH)
Bear 2,000 8,000 MH 700 DLH
Puppy 3,000 5,000 MH  1,000 DLH
Bunny 5,000 4,000 MH 2,300 DLH

The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Puppy during the year?

Group of answer choices
$8,400
$60,000
$96,000
$48,000
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