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How much overhead would be assigned to the Downy product

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Reference no: EM133094364

Question - Bonita manufactures mattresses for the hotel industry. It has two products, Downy and Firm and total overhead of $504000. The company plans to manufacture 250 Downy mattresses and 310 Firm mattresses this year. In manufacturing the mattresses, the company must perform 690 material moves for the Downy and 290 for the Firm; it processes 114 purchase orders for the Downy and 86 for the Firm; and the company's employees work 2500 direct labour hours on the Downy product and 3500 on the Firm. Bonita's total material handling costs are $294000 and its total purchasing costs are $210000. Using ABC, how much overhead would be assigned to the Downy product?

Reference no: EM133094364

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