Windsor Co.incurs $987000 of overhead costs each year inits three main departments, machining ($560000),inspections ($280000) and packing ($147000). Themachining department works 4000 hours per year, thereare 600 inspections per year, and the packing departmentpacks 1000 orders per year. Information about Windsor'stwo products is as follows:Product YProduct X3000Machining hours1000100500Inspections350650Orders packedDirect labor hours18001700If traditional costing based on direct labor hours is used,how much overhead is assigned to Product X this year?o $341654$479400e$238117$493500

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Asked Oct 13, 2019
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Windsor Co.incurs $987000 of overhead costs each year in
its three main departments, machining ($560000),
inspections ($280000) and packing ($147000). The
machining department works 4000 hours per year, there
are 600 inspections per year, and the packing department
packs 1000 orders per year. Information about Windsor's
two products is as follows:
Product Y
Product X
3000
Machining hours
1000
100
500
Inspections
350
650
Orders packed
Direct labor hours
1800
1700
If traditional costing based on direct labor hours is used,
how much overhead is assigned to Product X this year?
o $341654
$479400
e$238117
$493500
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Windsor Co.incurs $987000 of overhead costs each year in its three main departments, machining ($560000), inspections ($280000) and packing ($147000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor's two products is as follows: Product Y Product X 3000 Machining hours 1000 100 500 Inspections 350 650 Orders packed Direct labor hours 1800 1700 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? o $341654 $479400 e$238117 $493500

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Expert Answer

Step 1

Calculate overhead allocation rate:

Overhead allocation rate = Estimated overhead cost / Direct labor hours

Overhead allocation rate = $987,000 / (1,7...

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