How much of the order processing overhead is allocated


Jaime Inc. manufactures sweaters and jackets. The company estimated its overhead in the order-processing department to be $180,000. They produce 50,000 sweaters and 80,000 jackets each year. Sweater production requires 25,000 machine hours, jacket production requires 50,000 machine hours. Each month Jaime places 2 raw materials orders for sweaters and 8 for jackets. Using orders placed as a cost driver, how much of the order processing overhead is allocated to jackets?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How much of the order processing overhead is allocated
Reference No:- TGS099994

Expected delivery within 24 Hours