Question: Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs

Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs and activities are shown below.

Assembly Finishing
Direct labor hours 120,000 DLH 142,000 DLH
Machine hours 320,000 MH 32,000 MH
Overhead costs $ 320,000 $ 454,400

Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.70 machine hours in the Assembly Department, and 3.50 direct labor hours and 0.8 machine hours in the Finishing Department?

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