Barry & Co produces a range of products through several processes.Total overhead costs for process A are $400 000 and overhead is allocated to units of product on the basis of $6 of overhead for each hour of direct labour employed.If 7000 units of product Y pass through process A requiring 3500 direct labour hours the overhead from process A to be applied to product Y is:
A)$66 667
B)$24 000
C)$42 000
D)$21 000

Question

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The Answer of Barry & Co produces a range of products through several processes.Total overhead costs for process A are $400 000 and overhead is allocated to units of product on the basis of $6 of overhead for each hour of direct labour employed.If 7000 units of product Y pass through process A requiring 3500 direct labour hours the overhead from process A to be applied to product Y is:
A)$66 667
B)$24 000
C)$42 000
D)$21 000

Barry & Co Produces a Range of Products Through Several