Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year? $ 245000 $ 490000 $ 343000 $ 476000
Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year? $ 245000 $ 490000 $ 343000 $ 476000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Windsor Co. incurs $ 980000 of
| Product X | Product Y | |
| Machining hours | 1000 | 3000 |
| Inspections | 100 | 400 |
| Orders packed | 350 | 650 |
| Direct labor hours | 1700 | 1800 |
Using ABC, how much overhead is assigned to Product X this year?
$ 245000
$ 490000
$ 343000
$ 476000
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