Randy Company produces candy sticks (hooked and straight). Both products pass through two producing departments. The hooked stick's production is much more labor-intensive than the straight stick. The straight stick is also more popular. The following data have been gathered for the two products:
Total overhead costs equal $400,000. Randy applies overhead based on direct labor hours.

Question

Randy Company produces candy sticks (hooked and straight). Both products pass through two producing departments. The hooked stick's production is much more labor-intensive than the straight stick. The straight stick is also more popular. The following data have been gathered for the two products:
  Total overhead costs equal $400,000. Randy applies overhead based on direct labor hours.

Quizplus · Accepted Answer

The Answer of Randy Company produces candy sticks (hooked and straight). Both products pass through two producing departments. The hooked stick's production is much more labor-intensive than the straight stick. The straight stick is also more popular. The following data have been gathered for the two products:
  Total overhead costs equal $400,000. Randy applies overhead based on direct labor hours.

Randy Company Produces Candy Sticks (Hooked and Straight)