Bergeron Co. manufactures two printers, Pronto and Speedy. Total overhead of S1,260,000 is incurred by three departments: Setups $80,000; Machining $880,000; and Shipping $300,000. The company also incurs $40,000 of direct labor. Information concerning the two product lines is shown below: Pronto Speedy Machine setups 25 25 Machine hours 6,500 3,500 Orders shipped 225 375 Direct labor costs S100,000 S300,000 Using activity-based costing, how much overhead is assigned to Speedy?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bergeron Co. manufactures two printers, Pronto and Speedy. Total overhead of $1,260,000 is incurred by
three departments: Setups $80,000; Machining $880,000; and Shipping $300,000. The company also
incurs $40,000 of direct labor. Information concerning the two product lines is shown below:
Pronto
Speedy
Machine setups
25
25
Machine hours
6,500
3,500
Orders shipped
225
375
Direct labor costs
$100,000
$300,000
Using activity-based costing, how much overhead is assigned to Speedy?
Transcribed Image Text:Bergeron Co. manufactures two printers, Pronto and Speedy. Total overhead of $1,260,000 is incurred by three departments: Setups $80,000; Machining $880,000; and Shipping $300,000. The company also incurs $40,000 of direct labor. Information concerning the two product lines is shown below: Pronto Speedy Machine setups 25 25 Machine hours 6,500 3,500 Orders shipped 225 375 Direct labor costs $100,000 $300,000 Using activity-based costing, how much overhead is assigned to Speedy?
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