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Borsetta, Inc. manufactures two kinds of bags totes and satchels. The company allccates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs forthe year are $25,000 Additional estimated information is given below. Totes Satchels $44 $62 540 370 Direct materials cost per unit Direct labor cost per unit Number of units $33 $54 Calculate the amount of overhead to be allocated to Satchels, if the actual units produced and direct labor costs equal the estimated amounts. (Round any percentages to two decimal places and your final answer to the nearest dollar.) OA. $11,007 O B. $22,940 Oc. $13,991 D. $463

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Answer #1
Option A is the correct answer
Calculation Of Direct Labor Cost
Totes (54*540) 29160
Satchels (62*370) 22940
Total Direct Labor Cost 52100
Overhead allocated to Satchels = 22940/52100*25000
11007.68
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