A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Production information for Slime is as follows: Compute the amount of overhead assigned to Slime. a) $3,037,500
b) $2,025,000
c) $2,760,000
d) $2,467,851

c) $2,760,000

Explanation:

Computation of the amount of overhead assigned to Slime.

First step

Ordering and Receiving=Cost/Expected use of Driver×Additional Expected use of Driver

$1,200,000/2,000×1,600

=600×1,600

=$960,000

Mixing= Cost/Expected use of Driver×Additional Expected use of Driver

=1,500,000/50,000×30,000

=30×30,000

=$900,000

Testing=Cost/Expected use of Driver×Additional Expected use of Driver

= 1,350,000/1,500×1,000

=900×1,000

=$900,000

Second step

Addition of the total of :

Ordering and Receiving $960,000

Mixing $900,000

Testing $900,000

=$2,760,000

Therefore the amount of overhead assigned to Slime will be $2,760,000

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.