Reference no: EM132541182

Swifty Co. incurs $533000 of overhead costs each year in its three main departments, setup ($45000), machining ($405000), and packing ($83000). The setup department performs 60 setups per year, the machining department works 8000 hours per year, and the packing department packs 200 orders per year. Information about Swifty's 2 products is as follows:

                          Product One                   Product Two

Number of setups   10                            50

Machining hours      2800                        5200

Orders packed              120                          80

Question 1: Using ABC, how much overhead is assigned to Product One each year?

Option 1: $533000

Option 2: $333950

Option 3: $266500

Option 4: $199050