Scoresby Co. uses 3 machine hours and 1 direct labor hour to produce Product X.

Question

Scoresby Co. uses 3 machine hours and 1 direct labor hour to produce Product X. It uses 4 machine hours and 8 direct labor hours to produce Product Y. Scoresby's Assembly and Finishing Departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much overhead cost will be charged to the two products?


a. Product X = $880; Product Y = $2,240
b. Product X = $1,600; Product Y = $4,800
c. Product X = $400; Product Y = $400
d. Product X = $720; Product Y = $1,280

Explanation / Answer

c. Product X = $400; Product Y = $400

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