Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm and total overhead of 474000. the company plans to manufacture 400 downy mattresses and 100 firm mattresses this year. in manufacturing the mattresses, the company must perform 600 material moves for the downy and 400 for the firm. it processes 900 purchase orders for the downy and 700 for the firm. the companys employee work 1400 direct labor hours on the downy product and 3400 on the firm. sleep tights total material handling costs are 300000 and its total purchasing costs are 174000 using abc how much overhead would be assigned to the downy product? 1. 237,000 2.277,875 3. 196,125 4. 335,750

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm and total overhead of
474000. the company plans to manufacture 400 downy mattresses and 100 firm mattresses this year. in manufacturing
the mattresses, the company must perform 600 material moves for the downy and 400 for the firm. it processes 900
purchase orders for the downy and 700 for the firm. the companys employee work 1400 direct labor hours on the
downy product and 3400 on the firm. sleep tights total material handling costs are 300000 and its total purchasing costs
are 174000 using abc how much overhead would be assigned to the downy product?
1. 237,000
2.277,875
3. 196,125
4.335,750
Transcribed Image Text:Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm and total overhead of 474000. the company plans to manufacture 400 downy mattresses and 100 firm mattresses this year. in manufacturing the mattresses, the company must perform 600 material moves for the downy and 400 for the firm. it processes 900 purchase orders for the downy and 700 for the firm. the companys employee work 1400 direct labor hours on the downy product and 3400 on the firm. sleep tights total material handling costs are 300000 and its total purchasing costs are 174000 using abc how much overhead would be assigned to the downy product? 1. 237,000 2.277,875 3. 196,125 4.335,750
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