Question 37

1. Berg Company incurs $320,000 overhead costs each year in its three main departments, setup ($20,000), machining ($220,000), and packing ($80,000). 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 Berg's two products is as follows:

   Overhead

   Departments	Product A1	Product B1
   Number of setups	20	20
   Machine hours	1,000	4,000
   Orders packed	150	350
   Number of products manufactured	600	400

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

   A.

   $160,000

   B.

   $110,000

   C.

   $96,000

   D.

   $64,000

   Question 41

   Berg Company incurs $320,000 overhead costs each year in its three main departments, setup ($20,000), machining ($220,000), and packing ($80,000). 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 Berg's two products is as follows:

   Overhead

   Departments	Product A1	Product B1
   Number of setups	20	20
   Machine hours	1,000	4,000
   Orders packed	150	350
   Number of products manufactured	600	400

   Using ABC, how much overhead is assigned to Product B1 each year?

   	A.	$256,000
   	B.	$128,000
   	C.	$160,000
   	D.	$242,000