Big Trail Running Company has started to produce running apparel in addition to the trail...
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Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Machining Department Finishing Department Estimated Manufactu ring Overhead by Departme nt $600,000 $100,000 Trail Running Shoes 140,000 machine hours 5,000 direct labor hours Running Apparel 60,000 machine hours 15,000 direct labor hours Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: Machining Department Finishing Department Trail Runni ng Shoes 142,000 hours 4,500 hours Runni ng Appar el 57,000 hours 16,000 hours How much manufacturing overhead will be allocated to running apparel? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A.$ 699, 500 B.$ 251,000 C.$ 249,908 D.$ 175, 000
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