Homework answers / question archive /  Big Trail Running Company hasstarted to produce running apparel in addition to the trail r shoes that they have manufactured for years

 Big Trail Running Company hasstarted to produce running apparel in addition to the trail r shoes that they have manufactured for years

Accounting

Share With

 Big Trail Running Company hasstarted to produce running apparel in addition to the trail r shoes that they have manufactured for years. They feel that a departmental overhead rate w best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year 
Machining Department Finishing Department Estimated Manufacturing Overhead by Department 5800.000 $100.000 Trail Running Shoes 350.000 machine hours 19000 direct labor hours Running Apparel 50.000 machine hours 81000 direct labor hours 
Manufacturing overhead is driven by machine hours for the machining department and dire labor hours for the finishing department 
At the end of the year. the following information was gathered related to the production of t running shoes and running apparel. 
Machining Department Finishing Department Trail Running Shoes 352.000 hours 18.500 hours Running Apparel 47.000 hours 82.000 hours 
How much manufacturing overhead will be allocated to the trail running shoes? (Round an intermediary calculations to the nearest cent and your final answer to the nearest dollar) A) $225,000 6)8728,746 C) $898,625 D) 5727.125