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  3. 4. marko company produces two products, xeon and z

4. Marko Company produces two products, Xeon and Zeon in a small manufacturing plant which...

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Accounting

4. Marko Company produces two products, Xeon and Zeon in a small manufacturing plant which had total manufacturing overhead of $45,000 in January and used 600 direct labor hours. The factory has two departments, Preparation, which incurred $25,000 of manufacturing overhead, and Processing which incurred $20,000 of manufacturing overhead. Preparation used 400 hours of direct labor and Processing used 160 machine hours. During January, 300 direct labor hours were used in making 100 units of Xeon, and 300 were used in making 100 units of Zeon.

Assume that Xeon used 175 direct labor hours and Zeon used 225 direct labor hours in the Preparation Department. Also, assume that Xeon used 100 machine hours and Zeon used 60 machine hours in the Processing Department. The overhead costs assigned to each unit of Xeon and Zeon were:

a. $253.50 for Xeon and $196.50 for Zeon

b. $ 62.50 to Xeon and $125 to Zeon

c. $215.63 to Zeon and $215.63 to Xeon

d. $234.38 to Xeon and $215.63 to Zeon

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