Drive Safe,Inc

Essay

Drive Safe,Inc.a leading manufacturer of car spare parts,divided its manufacturing process into two
Departments - Production and Packing.The estimated overhead costs for the Production and Packing
departments amounted to $14,000,000 and $20,000,000,respectively.The company produces two types of parts - Part 1 and Part 2.The total estimated labor hours for the year were 40,000,and estimated machine hours were 35,000.The Production department is mechanized,whereas the Packing department is labor oriented.Calculate the amount of manufacturing overhead costs allocated to Part 1.
$$\begin{array} { | c | c | c | } \hline & \textbf { Production } & \textbf { Packing } \\\hline & \text { Machine hours } & \text { Labor hours } \\\hline \textbf { Part1 } & 10,000 & 30,000 \\\hline \textbf { Part 2 } & \underline { 25,000 } & \underline { 10,000 }_{_{}} \\\hline & \underline { 35,000 } & \underline { 40,000 }_{} \\\hline\end{array}$$