Bag Ladies, Inc Calculate the Amount of Overhead to Be Allocated to Totes

Multiple Choice

Bag Ladies, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 40 \\\hline \text { Direct labor cost per unit } & \$ 53 & \$ 61 \\\hline \text { Number of units } & 530 & 360 \\\hline\end{array}$$ Calculate the amount of overhead to be allocated to Totes. (Round any percentages to two decimal places and your final answer to the nearest dollar.)

A) $481
B) $327
C) $11,189
D) $14,312