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 above data for Wall Nuts,Inc.to compute the total manufacturing cost per 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) $18.20
C) $21.95
D) $27.30
E) $36.00