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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
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