Lehrbaum & Company manufactures two products, pillows and comforters. The compan

Question

Lehrbaum & Company manufactures two products, pillows and comforters. The company has estimated its overhead in the order-processing department to be $240,000. The company produces 50,000 pillows and 80,000 comforters each year.Pillow production requires 25,000 machine hours, comforter production requires 50,000 machine hours. The company places raw materials for pillows and the remainder for raw materials for comforrters. How much of the order processing overhead should be allocated to comforters? a. $120,000 b. $160,000 c. $147,000 d. $192,000

Explanation / Answer

d. $192,000

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