Q22

A company incurs $1220000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 196000 packaging transactions, and 2000 tests per year in producing 405000 drums of oil and 602000 drums of sludge. The following data are available: Department Use of Cost Driver Cost Processing 800 $490000 Packaging 196000 490000 Testing 2000 240000 Production information for sludge is as follows: Department Use of Cost Driver Processing 300 Packaging 100000 Testing 600 Calculate the amount of overhead assigned to sludge. O $466000 O $610000 O $714250 O $505750