Just need some clarification on this answer and shown work. I chosen the correct
ID: 2493066 • Letter: J
Question
Just need some clarification on this answer and shown work. I chosen the correct answer but i just need some more justication how to get the answer i got. Thank you!
Ben Gordon, Inc. Manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembling department to be 330,000. The company producers 300,000 wheels and 600,000 seats each year. Each wheel uses 2 parts and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels?
A. 82,500 - This is the correct answer
Explanation / Answer
Total parts=(300,000×2)+(600,000×3)
=2,400,000 parts
Price per part=$330,000/2,400,000
=$0.1375 per part
Allocation for wheel=600,000×$0.1375
=$82500
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