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 the dollar amount of overhead applied to each unit of oak paneling,assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.

A) $8.70
B) $1.40
C) $14.40
D) $26.25
E) $41.00