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Windsor Co. incurs $1050000 of overhead costs each year in its three main departments machining ($600000), inspections ($300,000) and packing ($150,000). The machining department works
Windsor Co. incurs $1050000 of overhead costs each year in its three main departments machining ($600000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Windsor's two products is as follows Product X Product Y Machining Hours Inspections Orders Packed Direct Labor Hours 1,000 100 350 1,700 3,000 500 650 1,800 Using the ABC, how much overhead is assigned to Product X this year? a. $252,500 b. $363,462 c. $510,000 d. $525,000
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