Sampson Company Manufactures Two Products, Plain and Complex

Multiple Choice

Sampson Company manufactures two products, plain and complex.The company has estimated its overhead in the order-processing department to be $480,000.The company produces 50,000 plain and 80,000 complex each year.Plain production requires 25,000 machine hours, complex production requires 50,000 machine hours.The company places raw materials orders 10 times per month, 2 times for raw materials for plain and the remainder for raw materials for complex.How much of the order processing overhead should be allocated to complex?

A) $240,000
B) $320,000
C) $295,386
D) $384,000