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Foxx Company incurs $480,000 overhead costs each year in its three main departments, setup ($30,000), machining ($330,000), and packing ($120,000). The setup department performs 40

Foxx Company incurs $480,000 overhead costs each year in its three main departments, setup ($30,000), machining ($330,000), and packing ($120,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Foxxs two products is as follows:

Product A1 Product B1

Number of setups 20 20

Machining hours 1,000 4,000

Orders packed 150 350

Number of products manufactured 600 400

If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year?

Select one: a. $96,000 b. $240,000 c. $165,000 d. $144,000

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