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Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufa

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Correct option is: d. $7,27,125
Workings:
Predetermined Machine hour rate = $800000 / (350000 + 50000)
= $                                          2.00
Predetermined Direct labor rate = $100000 / (19000 + 61000)
= $                                          1.25
Manufacturing overheads allocated to Trail running shoes
Machining Department = 352000 X $2 = $       7,04,000
Finishing Department = 18500 X $1.25 = $           23,125
Total = = $       7,27,125
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