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

Question

Scoresby Co. uses 3 machine horns and 1 direct labor hour to produce Product X. It uses 4 machine hours and 8 direct labor hours to produce Product V. 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? Product X = $720; Product Y = $1, 280 Product X = $1,600; Product Y = $4,800 Product X = $400; Product Y = $400 Product X = $880; Product Y = $2,240

Explanation / Answer

Answer : Answer 'D' is correct . That is Product X = $880; Product Y = $ 2240.

Product X Y Machine Hour 3 4 Machine Hour rate 240 240 Total Machine hour cost 720 960 Labour Hour 1 8 Labour Hour Rate 160 160 Total Labour cost 160 1280 Total Cost 880 2240

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