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Bonita Co. incurs $544000 of overhead costs each year in its three main departments, setup ($46000), machining ($399000), and packing ($99000). The setup department performs
Bonita Co. incurs $544000 of overhead costs each year in its three main departments, setup ($46000), machining ($399000), and packing ($99000). The setup department performs 50 setups per year, the machining department works 7600 hours per year, and the packing department packs 160 orders per year. Information about Bonitas 2 products is as follows:
Product One | Product Two | |
Number of setups | 20 | 30 |
Machining hours | 3400 | 4200 |
Orders packed | 120 | 40 |
Using ABC, how much overhead is assigned to Product One each year?
| $544000 |
| $272850 |
| $272000 |
| $271150 |
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