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A company incurs $1190000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions,
A company incurs $1190000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 1800 tests per year in producing 400000 drums of oil and 606000 drums of sludge. The following data are available: Department Use of Cost Driver Cost Processing 800 $502000 Packaging 200000 502000 Testing 1800 186000 Production information for oil is as follows: Department Use of Cost Driver Processing 400 Packaging 124000 Testing 1800 Calculate the amount of overhead assigned to oil. OOOO $595000 $441760 $497240 $748240
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