Question: Use the data for Wall Nuts, INC. to compute the dollar amount of overhead applied to each unit of oak paneling, assuming the company uses

Wall Nuts, Incorporated produces paneling that requires two processes, A and B, to complete. Oak is the best-selling type of paneling produced, Information related to the 40,000 units of oak paneling produced annually is shown in the following table Direct materials $ 380,000 Direct labor Department A (6,000 DLH * $25 per DLH) $ 150,000 Department B (35,125 DLH * $16 per DLH) $ 562,000 Machine Hours Department A 24,000 MH Department B 32,000 MH Wall Nuts' total expected overhead costs and related overhead data are shown below. Direct labor hours Machine hours Budgeted overhead costs Department 67,000 DLH 100,000 MH $ 450,000 Department B 170,000 DLH 80,000 MH $ 600,000 Use the data for Woll Nuts, Incorporated to compute the dollar amount of overhead applied to each unit of oak paneling, assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B. Multiple Choice $1.40 $8.70 $26.25 $4100 $14.40
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