Reference no: EM132837031

Oriole Co. incurs $158000 of overhead costs each year in its three main departments, setup ($9700), machining ($111000), and packing ($37300). The setup department performs 50 setups per year, the machining department works 4000 hours per year, and the packing department packs 400 orders per year.

Information about Oriole's 2 products is as follows:

                             Product One     Product Two

Number of setups         25      25

Machining hours        1000        3000

Orders packed           200      200

Problem 1: If machining hours are used as a base, how much overhead is assigned to Product One each year?

Option 1: $39500
Option 2: $79000
Option 3: $55500
Option 4: $43620