Scoresby Co

Multiple Choice

Scoresby Co. uses 3 machine hours and 1 direct labor hour to produce Product X. It uses 4 machine hours and 8 direct labor hours to produce Product Y. Scoresby's Assembly and Finishing Departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much overhead cost will be charged to the two products?

A) Product X = $1,600; Product Y = $4,800
B) Product X = $400; Product Y = $400
C) Product X = $880; Product Y = $2,240
D) Product X = $720; Product Y = $1,280