Problem
Scoresby Co. uses 6 machine hours and 2 direct labor hours to produce Product X. It uses 8 machine hours and 16 direct labor hours to produce Product Y. Scoresby's Assembly and Finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much overhead cost will be charged to the two products?
a Product X = $3,200; Product Y = $9,600
b Product X = $800; Product Y = $800
c Product X = $1,760; Product Y = $4,480
d Product X = $1,440; Product Y = $2,560.