The Bello Horizonte Company is a textile company that specializes in manufacturing promotional items for jackets with embroidered logos. It uses machine hours as the only allocation base. These are the estimates for next year. We also have the estimates for the jackets that the EGAE asks us to promote its new eMBA. What is the amount of indirect costs that will be distributed or allocated (allocated) to EGAE's work? Company eMBA EGAE Direct Materials $40,000 $2,000 Direct Labor $10,000 $400
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The Bello Horizonte Company is a textile company that specializes in manufacturing promotional items for jackets with embroidered logos. It uses machine hours as the only allocation base. These are the estimates for next year. We also have the estimates for the jackets that the EGAE asks us to promote its new eMBA. What is the amount of indirect costs that will be distributed or allocated (allocated) to EGAE's work?
| Company | eMBA EGAE | |
| Direct Materials | $40,000 | $2,000 |
| Direct Labor | $10,000 | $400 |
| $45,000 | ||
| Manufacturing Hours | 100,000 mh | 900 mh |
Required: How much will the total cost of the eMBA EGAE order be?
a. $2,805
b. $1,920
c. $1,970
d. $2,905
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