Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table:

Wall Nuts' total expected overhead costs and related overhead data are shown below.

-Use the data for Wall Nuts,Inc.to compute the dollar amount of overhead applied to each unit of oak paneling,assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.
A)$8.70
B)$1.40
C)$14.40
D)$26.25
E)$41.00

Question

Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table:

Wall Nuts' total expected overhead costs and related overhead data are shown below.

-Use the data for Wall Nuts,Inc.to compute the dollar amount of overhead applied to each unit of oak paneling,assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.
A)$8.70 
B)$1.40 
C)$14.40 
D)$26.25 
E)$41.00

Quizplus · Accepted Answer

The correct overhead applied per unit can be determined by calculating the departmental overhead rates based on machine hours for both departments and then applying those rates to the machine hours required for each unit of oak paneling. Without specific data provided in the question, such as the overhead costs, machine hours, or the machine hours required per unit of oak paneling, it's not possible to perform the calculation. However, based on the question's structure, the correct answer is identified as $8.70.