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: Using ABC, how much overhead is assigned to Product Two each year?
A)$80,000
B)$64,000
C)$121,000
D)$128,000

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:  Using ABC, how much overhead is assigned to Product Two each year?
A)$80,000 
B)$64,000 
C)$121,000 
D)$128,000

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:  Using ABC, how much overhead is assigned to Product Two each year?
A)$80,000 
B)$64,000 
C)$121,000 
D)$128,000