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. What is the overhead per unit for race cars? (round to 3 decimal places)

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