22)

A company incurs $1300000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 196000 packaging transactions, and 1800 tests per year in producing 408000 drums of oil and 593000 drums of sludge. The following data are available: Department Use of Cost Driver Cost Processing 800 $506000 Packaging 196000 506000 Testing 1800 288000 Production information for sludge is as follows: Department Use of Cost Driver 300 Processing Packaging 98000 Testing 500 Calculate the amount of overhead assigned to sludge. $777250 O $522750 O $473000 O $650000