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How much of order-processing overhead should be allocated

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Question 1: Waterway Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $176000. The company produces 54000 sweaters and 77000 jackets each year. Sweater production requires 29000 machine hours, jacket production requires 52000 machine hours. The company places raw materials orders 10 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets?

Option 1: $88000

Option 2: $118000

Option 3: $108700

Option 4: $140800

Reference no: EM132541173

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