Use the following information to answer questions
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:

-If Woller uses direct labor hours to assign overhead to products, how much overhead will be assigned to each product (rounded to the nearest cent)?
Hamburgers &emsp; Sausages
A) $0.12 &emsp; $0.23
B) $0.17 &emsp; $0.17
C) $0.25 &emsp; $0.30
D) $0.30 &emsp; $0.38
E) $0.55 &emsp; $0.65

Question

Use the following information to answer questions 
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:
 
-If Woller uses direct labor hours to assign overhead to products, how much overhead will be assigned to each product (rounded to the nearest cent)?
Hamburgers &emsp; Sausages
A) $0.12 &emsp; $0.23 
B) $0.17 &emsp; $0.17 
C) $0.25 &emsp; $0.30 
D) $0.30 &emsp; $0.38 
E) $0.55 &emsp; $0.65

Quizplus · Accepted Answer

Woller uses direct labor hours to assign overhead to products. The overhead rate is $0.25 per direct labor hour. Hamburgers require 0.5 direct labor hours, and sausages require 0.7 direct labor hours. Therefore, the overhead assigned to hamburgers is $0.25 x 0.5 = $0.12, and the overhead assigned to sausages is $0.25 x 0.7 = $0.17.

Use the Following Information to Answer Questions