How much overhead would be assigned to the downy product

Reference no: EM133655653

Question: Sheffield manufactures mattresses for the hotel industry. It has two products, Downy and Firm, and total overhead of $510000. The company plans to manufacture 210 Downy mattresses and 350 Firm mattresses this year. In manufacturing the mattresses, the company must perform 680 material moves for the Downy and 340 for the Firm; it processes 118 purchase orders for the Downy and 86 for the Firm; and the company's employees work 2900 direct labour hours on the Downy product and 3100 on the Firm. Sheffield's total material handling costs are $295000 and its total purchasing costs are $215000. Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the Downy product?

Reference no: EM133655653

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