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Crane Co. estimates that it will incur $1080000 of overhead costs each year in its three main departments, machining (5600000), inspections ($330000) and packing ($150000).

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Crane Co. estimates that it will incur $1080000 of overhead costs each year in its three main departments, machining (5600000), inspections ($330000) and packing ($150000). The machining department works 4000 hours per year, there are 600 inspections per year and the packing department packs 1000 orders per year. Information about Crane's two products and their estimated use of cost drivers is as follows: Product X Product Y 3000 1000 Machining hours Irispections 100 500 Orders packed 350 650 Direct labor hours 1700 1800 If ABC is used, how much overhead will be assigned to Product X? $373846 5492000 $540000 O $257500

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