Question
The Smart Company incurs $600,000 of overhead in a year in their three main departments, inspections ($80,000), machining ($420,000), and packing ($100,000). The inspection department
The Smart Company incurs $600,000 of overhead in a year in their three main departments, inspections ($80,000), machining ($420,000), and packing ($100,000). The inspection department performs 50 inspections per year, the machining department works 8,000 hours per year, and the packing department packages 200 orders per year. Information about the Company's products is as follows:
Product A Product B
Number of Inspections 10 40
Machining hours 3,000 5,000
Orders packed 110 90
Calculate how much total overhead is assigned to Product A and Product B for the year.
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