Figure 4-6 The Fast & Furious Company Produces Two Products: Toy Planes

Multiple Choice

Figure 4-6
The Fast & Furious Company produces two products: toy planes and toy race 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 planes and 250,000 race cars are produced. Please find the following data:

-Refer to Figure 4-6. How much overhead is applied to the planes?

A) $ 60,000
B) $250,000
C) $219,500
D) $225,000