[The following information applies to the questions displayed below.]Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. AssemblyFinishingDirect labor hours 100,000DLH 140,000DLHMachine hours 300,000MH 60,000MHOverhead costs$300,000 $420,000 Assume that Angle Max Industries allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.5 machine hours in the Assembly Department, and 3.5 direct labor hours and 0.5 machine hours in the Finishing Department?
A. $11.00.
B. $10.50.
C. $13.00.
D. $7.50.
E. $6.00.
Answer: E
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