Canterra Co.incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000), machining ($110,000), and packing ($40,000).The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year.Information about Canterra's 2 products is as follows: If machining hours are used as a base, how much overhead is assigned to Product One each year?
A)$32,000
B)$80,000
C)$55,000
D)$48,000

Question

Canterra Co.incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000), machining ($110,000), and packing ($40,000).The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year.Information about Canterra's 2 products is as follows:  If machining hours are used as a base, how much overhead is assigned to Product One each year?
A)$32,000 
B)$80,000 
C)$55,000 
D)$48,000

Quizplus · Accepted Answer

The Answer of Canterra Co.incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000), machining ($110,000), and packing ($40,000).The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year.Information about Canterra's 2 products is as follows:  If machining hours are used as a base, how much overhead is assigned to Product One each year?
A)$32,000 
B)$80,000 
C)$55,000 
D)$48,000