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Stolb23 [73]
3 years ago
7

Ben gordon, inc. manufactures 2 products, wheels and seats. the company has estimated its overhead in the assembling department

to be $660,000. the company produces 300,000 wheels and 600,000 seats each year. each wheel uses 2 parts, and each seat uses 3 parts. how much of the assembly overhead should be allocated to wheels?
Business
1 answer:
k0ka [10]3 years ago
8 0
The number of parts used for the wheels is,
                                (300,000 wheels) x (2 parts/wheel) = 600,000
For the seats,
                             (600,000 seats) x (3 parts/seat) = 1,800,00
From the calculation above, the ratio of wheels to total number of parts is 0.25 which means that the overhead allocated for the wheels should be equal to $165,000. The rest of the money should be for Sam, totaling to $495,000. 
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