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Question 2 (4 marks) Counter Co. (Counter) incurs $160,000 of overhead costs every year in performing three main activities, as follows: Setup $ 10,000
Question 2 (4 marks) Counter Co. (Counter) incurs $160,000 of overhead costs every year in performing three main activities, as follows: Setup $ 10,000 Machining $110,000 Packing $ 40,000 Every year, Counter has 40 setups, uses 5,000 machining hours, and completes 500 orders. Information about two of Counter's products for the current year is as follows: Number of setups Machining hours Orders packed Number of units manufactured Product N Product W 5 20 300 4,000 75 350 600 400 Counter uses activity-based costing to assign overhead to products. Required: Calculate the overhead that Counter should assign to one unit of Product W in the current year. (4 marks)
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