Westvaco Inc. has two divisions. Gross profit computations for these two divisions for the year 2012 are given below:

*Manufacturing overhead is allocated to products based on the amount of direct labor dollars.
Westvaco has determined that its total manufacturing overhead cost of $400,000 is a mixture of batch-level and product line costs. The following information has been assembled regarding overhead:

Question

Westvaco Inc. has two divisions. Gross profit computations for these two divisions for the year 2012 are given below:
 
*Manufacturing overhead is allocated to products based on the amount of direct labor dollars.
Westvaco has determined that its total manufacturing overhead cost of $400,000 is a mixture of batch-level and product line costs. The following information has been assembled regarding overhead:

Quizplus · Accepted Answer

The Answer of Westvaco Inc. has two divisions. Gross profit computations for these two divisions for the year 2012 are given below:
 
*Manufacturing overhead is allocated to products based on the amount of direct labor dollars.
Westvaco has determined that its total manufacturing overhead cost of $400,000 is a mixture of batch-level and product line costs. The following information has been assembled regarding overhead: