1) The Smart Company has been in business for 10 years and is located in

Toronto, Ontario.

The company manufactures two products, blenders and radios. The company

has estimated its overhead in their inspection department to be $240,000. The

company produces 60,000 blenders and 80,000 radios each year. Blender

production requires 20,000 machine hours, radio production requires 30,000

machine hours. The company completes 120 inspections per year, 40

inspections for blenders and the remainder for radios.

Calculate how much of the inspection overhead should be allocated to blenders

and radios? If there is a difference in the allocated overhead, explain why.