On january 1, 2018, primair corporation loaned vista company $300,000 and agreed to guarantee all of vista’s long-term debt in exchange for (1) decision-making authority over all of vista’s activities and (2) an annual cash payment of 25 percent of vista’s revenues. as a result of the agreement, primair is the primary beneficiary of vista (a variable interest entity). primair’s loan to vista stipulated a 7 percent (market) rate of interest to be paid annually.

Scoresby co. uses 6 machine hours and 2 direct labor hours to produce product x. it uses 8 machine hours and 16 direct labor hours to produce product y. scoresby's assembly and finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. how much overhead cost will be charged to the two products? a. product x = $1,440; product y = $2,560 b. product x = $1,760; product y = $4,480 c. product x = $3,200; product y = $9,600 d. product x = $800; product y = $800