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26. Canterra Co. incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000). machining ($110,000), and packing ($40,000). 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 Canterra's 2 products is as follows: Product One Product Two Number of setups 20 20 Machining hours 1,000 4,000 Orders packed 150 350 If machining hours are used as a base, how much overhead is assigned to Product One each year? a) $32,000 b) $80,000 c) $55,000 d) $48,000 27. Canterra Co, incurs $540,000 of overhead costs each year in its three main departments, setup ($40,000), machining ($400,000), and packing ($100,000). The setup department performs 50 setups per year, the machining department works 8,000 hours per year, and the packing department packs 200 orders per year. Information about Canterra's 2 products is as follows: Product One Product Two Number of setups 10 40 Machining hours 3,000 5,000 Orders packed 110 Using ABC, how much overhead is assigned to Product One each year? 90 a) $540,000 b) $327,000 c) $270,000 d) $213,000 28. Canterra Co. incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000), machining ($110,000), and packing ($40,000). 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 Canterra's 2 products is as follows: Product One Product Two Number of setups 20 20 Machining hours 1,000 4,000 Orders packed 150 350 Number of product Manufactured 600 400 Using ABC, how much overhead is assigned to Product Two each year? a) $80,000 b) $64,000 c) $121,000 d) $128,000 29. A company incurs $1,200,000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of oil and 600,000 drums of sludge. The following data are available: Department Estimated use of Driver Cost Processing 800 $500,000 Packaging 200,000 500,000 Testing 2,000 200,000 Production information for oil is as follows: Department Estimated use of Driver Processing 300 Packaging 120,000 Testing 1,600 Calculate the amount of overhead assigned to oil. a) $600,000 b) $647,500 c) $552,500 d) $460,000 32. Saver Company produces only one product. Monthly fixed expenses are $20,000, monthly unit sales are 3,500, and the unit contribution margin is $7. How much is monthly net profit? a) $44,500 b) $24,500 c) $o d) $4,500