How much overhead would be assigned to each unit of product

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Reference no: EM13328783

Bangor Company makes products C and D. Information for overhead costs and for the two products appears below. The company makes 50,000 units of product C each year and 20,000 units of product D.

Activity

Driver

Total Overhead Cost

Prod C Usage

Prod D usage

Setups	# of setups	$200,000	500 setups	1,500 setups
Ordering parts	# of parts	$300,000	60,000 parts	40,000 parts
Machining	MH	$600,000	12,000 MH	6,000 MH
Inspections	# of Insp	$400,000	10,000 Insp	40,000 Insp
Shipping	# of shipments	$300,000	10,000 Ship	10,000 Ship

Total overhead

$1,800,000

* MH - Machine Hours

Insp - Inspections

Ship - Shipments

Assume that all overhead is assigned to products using machine hours. How much overhead would be assigned to each unit of Product D?

Reference no: EM13328783

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