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a. $8.81 b. $14.13 C. $31.58 d. $11.30 3158000 100,000 = 31.58 Question 2 A company incurs $3780000 of overhead each year in three departments:

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a. $8.81 b. $14.13 C. $31.58 d. $11.30 3158000 100,000 = 31.58 Question 2 A company incurs $3780000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of Oil and 600000 drums of Sludge. The following data are available: Department Expected Use of Driver Cost Processing 800 $1620000 Packaging 200000 1560000 Testing 2000 600000 Production information for the two products is as follows: Oil Sludge Department Expected Use of Driver Expected Use of Driver Processing 300 500 Packaging 120000 80000 Testing 1600 400 The amount of overhead assigned to Oil using ABC is a. $1756500 c. $1440000 b. $1890000 d. $202350 Question 3 Waterway Industries has two divisions-Standard and Premium. Each division has hundreds of different types of nis racquets and tennis products. The following information is available: Total Standard Division $400000 $300000 $100000 Sales Variable costs Contribution mamin Premium Division $600000 420000 $180000 $1000000

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