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Fairway company estimates that it will incur family $555,000 overhead costs each year in it's three main departments set up $30,000, machining $150,000, and packing
Fairway company estimates that it will incur family $555,000 overhead costs each year in it's three main departments set up $30,000, machining $150,000, and packing $375,000. The setup department performs 40 setups per year, the machining department works 5000 hours per year and the packing department packs 500 orders per year. Information about Fairway's two products and their estimated use cost drives is as follows: Product A1 Product B1 Number of setups 20 20 Machine and hours 1000 4000 Orders packed 150 350 Number of products manufactured 600 400 Using the ABC how much over here is assigned to Product A1 each year
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