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A company incurs $3381500 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works
A company incurs $3381500 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of product Goo and 600000 drums of product Slime. The following data are available: Activity Cost Pools Estimated use of Driver Cost Ordering and Receiving 2000 $1060000 Mixing 50000 1775000 Testing 1500 1336500 Production information product Goo is as follows: Activity Cost Pools Estimated use of Driver Ordering and Receiving 400 Mixing 20000 Testing 500 If ABC is used, what amount of overhead will be assigned to Goo? O $1690750 O $845375 $1320997 O $1367500
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