# (The following information applies to the questions displayed below.) Angle Max Industries produces a product which...

(The following information applies to the questions displayed below.) Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Assembly 140,000 DLH 340,000 MH \$340,000 Finishing 144,000 DLH 74,800 MH \$489,600
Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 2.9 machine hours in the Assembly Department, and 3.5 direct labor hours and 0.4 machine hours in the Finishing Department? Multiple Choice O \$14.80 O \$8.50 O \$11.90. O \$2.90. O \$12.40
Required Information The following information applies to the questions displayed below.) Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Assembly 140,000 DLH 340,000 MH \$340,000 Finishing 144,000 DLH 7 4,800 MH \$489,600 Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 2.90 machine hours in the Assembly Department, and 3.50 direct labor hours and 0.4 machine hours in the Finishing Department?
Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 2.90 machine hours in the Assembly Department, and 3.50 direct labor hours and 0.4 machine hours in the Finishing Department? Multiple Choice Ο Ο \$8.50. Ο \$.90. Ο Ο \$6.60. Ο \$14.80. Ο \$1240.

Overhead rate per machine hour = \$340,000 / 340,000 = \$1

Overhead rate direct labor hour = \$489,600 / 144,000 = \$3.40

Total overhead cost = (2.9 X \$1) + (3.50 X \$3.40) = \$14.80

Plantwide overhead rate = (\$340,000 + \$489,600) / (340,000 + 74,800) = \$2

Total overhead cost = (2.9 + 0.4) X \$2 = \$6.60

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