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Your company manufactures 3 products - Basic, Advanced and Amazing. They all share a production engineering department. That department costs $1,000,000 per year to operated.

Your company manufactures 3 products - Basic, Advanced and Amazing. They all share a production engineering department. That department costs $1,000,000 per year to operated. Here is some information on the products and engineering:

Product Sales Engineering hours spent on the production lines
Basic 600,000 4,000
Advanced 300,000 3,000
Amazing 100,000 3,000

Using ABC, how much costs would you allocate to the Amazing Product for engineering overhead?

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