How much overhead would be assigned to the product a

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A company manufactures two products, A and B, and has total overhead of $504,000. The company plans to manufacture 200 of A and 300 of B this year. In manufacturing the products, the company must perform 700 material moves for product A and 300 for product B; it processes 114 purchase orders for product A and 90 for product B; and the company's employees work 2,800 direct labour hours on product A and 3,500 on product B. The company's total material handling costs are $300,000 and its total purchasing costs are $204,000.

Question 1: Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the product A?

a) $224,000

b) $252,000

c) $280,000

d) $336,000

Reference no: EM132556794

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