Canterra Co.incurs $540,000 of overhead costs each year in its three main departments, setup ($40,000), machining ($400,000), and packing ($100,000).The setup department performs 50 setups per year, the machining department works 8,000 hours per year, and the packing department packs 200 orders per year.Information about Canterra's 2 products is as follows: Using ABC, how much overhead is assigned to Product One each year?
A)$540,000
B)$327,000
C)$270,000
D)$213,000

Question

Canterra Co.incurs $540,000 of overhead costs each year in its three main departments, setup ($40,000), machining ($400,000), and packing ($100,000).The setup department performs 50 setups per year, the machining department works 8,000 hours per year, and the packing department packs 200 orders per year.Information about Canterra's 2 products is as follows:  Using ABC, how much overhead is assigned to Product One each year?
A)$540,000 
B)$327,000 
C)$270,000 
D)$213,000

Quizplus · Accepted Answer

The Answer of Canterra Co.incurs $540,000 of overhead costs each year in its three main departments, setup ($40,000), machining ($400,000), and packing ($100,000).The setup department performs 50 setups per year, the machining department works 8,000 hours per year, and the packing department packs 200 orders per year.Information about Canterra's 2 products is as follows:  Using ABC, how much overhead is assigned to Product One each year?
A)$540,000 
B)$327,000 
C)$270,000 
D)$213,000