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Bergeron Co. manufactures two printers, Pronto and Speedy. Total overhead of $1,260,000 is incurred by three departments: Setups $80,000; Machining $880,000; and Shipping $300,000. The

Bergeron Co. manufactures two printers, Pronto and Speedy. Total overhead of $1,260,000 is incurred by three departments: Setups $80,000; Machining $880,000; and Shipping $300,000. The company also incurs $40,000 of direct labor. Information concerning the two product lines is shown below:

Pronto Speedy
Machine setups 25 25
Machine hours 6,500 3,500
Orders shipped 225 375
Direct labor costs $100,000 $300,000

Using activity-based costing, how much overhead is assigned to Speedy?

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