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Sunland Co. incurs $531000 of overhead costs each year in its three main departments, setup ($42000), machining ($399000), and packing ($90000). The setup department
Sunland Co. incurs $531000 of overhead costs each year in its three main departments, setup ($42000), machining ($399000), and packing ($90000). The setup department performs 40 setups per year, the machining department works 7500 hours per year, and the packing department packs 240 orders per year. Information about Sunland's 2 products is as follows: Product One Product Two Number of setups 30 10 Machining hours 3400 4100 Orders packed 100 140 Using ABC, how much overhead is assigned to Product One each year? $265500 $249880 $281120 $531000
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