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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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