Figure 4-6 Cabrini Company Produces Two Products: Toy Trucks and Toy

Multiple Choice

Figure 4-6 Cabrini Company produces two products: toy trucks and toy cars.They use departmental overhead rates for the two production departments: molding and finishing.Molding uses machine hours to assign overhead and Finishing uses direct labor hours.50,000 trucks and 250,000 cars are produced.Please find the following data:

-Refer to Figure 4-6.What is the overhead per unit for cars? (round to 3 decimal places)

A) $0.50
B) $0.505
C) $0.32
D) $1.40