The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Calculate the total factory overhead to be charged to Nooks.
A) $300,000
B) $400,000
C) $488,000
D) $600,000

Question

The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information:   Calculate the total factory overhead to be charged to Nooks.
A) $300,000 
B) $400,000 
C) $488,000 
D) $600,000

Quizplus · Accepted Answer

According to the given chart, the total activity for Nooks is 80,000 machine hours and the total activity for both products combined is 200,000 machine hours. Given that the total factory overhead cost is $1,220,000, we can calculate the amount of factory overhead to be charged to Nooks as (80,000/200,000) * $1,220,000 = $488,000. Therefore, the correct choice is C.

The Skagit Company Manufactures Hooks and Nooks