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Windsor Co. incurs $898875 of overhead costs each year in its three main departments, machining ($510000), inspections ($255000) and packing ($133875). The machining department works
Windsor Co. incurs $898875 of overhead costs each year in its three main departments, machining ($510000), inspections ($255000) and packing ($133875). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsors two products is as follows:
Product X | Product Y | |
Machining hours | 1000 | 3000 |
Inspections | 100 | 500 |
Orders packed | 350 | 650 |
Direct labor hours | 1700 | 1800 |
Using ABC, how much overhead is assigned to Product X this year?
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