Barry & Co Produces a Range of Products Through Several

Multiple Choice

Barry & Co produces a range of products through several processes.Total overhead costs for process A are $400 000 and overhead is allocated to units of product on the basis of $6 of overhead for each hour of direct labour employed.If 7000 units of product Y pass through process A requiring 3500 direct labour hours the overhead from process A to be applied to product Y is:

A) $66 667
B) $24 000
C) $42 000
D) $21 000