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estion 27 ABC Inc. is a manufacturing company The following is key information about their overhead costs and their activity based costing systems Each year,
estion 27 ABC Inc. is a manufacturing company The following is key information about their overhead costs and their activity based costing systems Each year, it incurs $320,000 of overhead costs from its three departments production ($200,000), inspections ($50,000) and packing ($70,000). ABC Inc, calculates its cost driver rates based on practical capacity, 5.000 machine-hours for the production department, 500 inspections for inspections department, and 1,000 orders for the packing department. Actual usage information about the company's two products is as follows: Product A Product B Machine hours Total Actual Usage 3,000 3,000 6.000 Inspections performed Orders packed 400 300 700 450 650 Direct labor hours 1.100 1,700 1.800 3.500 How much overhead is assigned to Product B this year if the company uses activity-based costing? $ 181,000 O $171.100 $ 163,200 $ 195,500
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