Solved

Windsor Co If Traditional Costing Based on Direct Labor Hours Is Used

Question 75

Multiple Choice

Windsor Co.incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000) , inspections ($300,000) and packing ($150,000) .The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year.Information about Windsor's two products is as follows:  Product  ProductY  Machining hours 1,0003,000 Inspections 100500 Orders packed 350650 Direct labor hours 1,7001,800\begin{array} { l c c } & \text { Product } & \text { ProductY } \\\text { Machining hours } & 1,000 & 3,000 \\\text { Inspections } & 100 & 500 \\\text { Orders packed } & 350 & 650 \\\text { Direct labor hours } & 1,700 & 1,800\end{array} If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?


A) $252,501
B) $363,462
C) $510,000
D) $525,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents