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: ...................................................Product One............Product Two Number of setups...................................20...........................20 Machining Hours................................1,000......................4,000 Orders packed.......................................150.........................350 Number of Products Manufactured........600.........................400 Using ABC, How much of correspondence costs will be assigned to Department B? How much account rerification costs will be assigned to Department A?

Answer 1