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Bangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows setting up machines ($160.000), machining ($300,000) and inspecting ($100.000). Information
Bangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows setting up machines ($160.000), machining ($300,000) and inspecting ($100.000). Information on the two products follows: Velveeto and Fondant Direct labor hours Velveeto 60,000 Fondant 100,000 Machine setups Velveeto 2.400 Fondant 1,600 Machine hours Velveeta 96.000 Fondant 104.000 Inspections Velveeto 3,200 Fondant 2.800 Overhead is applied to Fondant using direct labor hours. What is the total amount of overhead charged to this product line using traditional costing? $105,000 $280,000 $350.000 $210.000
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