Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm, and a total
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Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm, and a total overhead of 504,000. the company plans to manufacture 200 downy mattresses and 300 firm mattresses this year. in manufacturing the mattresses, the company must perform 700 material moves for the downy and 400 for the firm. it processes 114 purchase orders for the downy and 90 for the firm. the company's employees work 2,800 direct labor hours on the downy product and 3400 on the firm. sleep tights' total material handling costs are $300,000 and its total purchasing costs are $204,000 using ABC how much overhead would be assigned to the downy product?
a). $280,000
b). $224,000
c). $252.000
d). $336,000
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