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Vaughn Co. incurs $541000 of overhead costs each year in its three main departments, setup ($36000), machining ($406000), and packing ($99000). The setup department
Vaughn Co. incurs $541000 of overhead costs each year in its three main departments, setup ($36000), machining ($406000), and packing ($99000). The setup department performs 60 setups per year, the machining department works 8000 hours per year, and the packing department packs 200 orders per year. Information about Vaughn's 2 products is as follows: Product One Product Two 20 20 40 40 Number of setups Machining hours 3200 4800 Orders packed 120 80 Using ABC, how much overhead is assigned to Product One each year? O $307200 O $541000 O $270500 O $233800
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