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