Wall Nuts, Inc

Multiple Choice

Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table:

Wall Nuts' total expected overhead costs and related overhead data are shown below.

-Use the data for Wall Nuts,Inc.to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B.

A) $4.50 per MH in Dept.A; $4.50 per MH in Dept.B.
B) $7.50 per MH in Dept.A; $7.50 per MH in Dept.B.
C) $4.50 per MH in Dept.A; $7.50 per MH in Dept.B.
D) $2.70 per MH in Dept.A; $6.00 per MH in Dept.B.
E) $0.60 per MH in Dept.A; $0.80 per MH in Dept.B.