Windsor Co.incurs $987000 of overhead costs each year in its three main departments, machining ($560000), inspections ($280000) and packing ($147000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor's two products is as follows: Product Y Product X 3000 Machining hours 1000 100 500 Inspections 350 650 Orders packed Direct labor hours 1800 1700 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? o $341654 $479400 e$238117 $493500
Windsor Co.incurs $987000 of overhead costs each year in its three main departments, machining ($560000), inspections ($280000) and packing ($147000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor's two products is as follows: Product Y Product X 3000 Machining hours 1000 100 500 Inspections 350 650 Orders packed Direct labor hours 1800 1700 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? o $341654 $479400 e$238117 $493500
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter3: Cost Behavior
Section: Chapter Questions
Problem 11E: Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has...
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![Windsor Co.incurs $987000 of overhead costs each year in
its three main departments, machining ($560000),
inspections ($280000) and packing ($147000). The
machining department works 4000 hours per year, there
are 600 inspections per year, and the packing department
packs 1000 orders per year. Information about Windsor's
two products is as follows:
Product Y
Product X
3000
Machining hours
1000
100
500
Inspections
350
650
Orders packed
Direct labor hours
1800
1700
If traditional costing based on direct labor hours is used,
how much overhead is assigned to Product X this year?
o $341654
$479400
e$238117
$493500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8142cc9d-12e4-4dde-a0b8-8404f6422c31%2Fa4d755c1-5534-4c6d-98a1-374d5ab83efb%2Fech9zdte.jpeg&w=3840&q=75)
Transcribed Image Text:Windsor Co.incurs $987000 of overhead costs each year in
its three main departments, machining ($560000),
inspections ($280000) and packing ($147000). The
machining department works 4000 hours per year, there
are 600 inspections per year, and the packing department
packs 1000 orders per year. Information about Windsor's
two products is as follows:
Product Y
Product X
3000
Machining hours
1000
100
500
Inspections
350
650
Orders packed
Direct labor hours
1800
1700
If traditional costing based on direct labor hours is used,
how much overhead is assigned to Product X this year?
o $341654
$479400
e$238117
$493500
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