How much Total Overhead is assigned to Product Line

How much Total Overhead is assigned to Product Line - Fudge

Assignment Help Accounting Basics

Reference no: EM132772845

Question - Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs:

Setting up equipment $840,000

Other overheard $5,400,000

Setting up equipment is based on setup hours, and other overhead is based on oven hours.

Wellington produces two products, Fudge and Cookies. Information on each product is as follow.

Fudge Cookies Units produced 8,000 445,000

Setup hours 12,000 3,000

Oven hours 5,000 35,000

Required - How much Total Overhead is assigned to the Product Line - Fudge?

Reference no: EM132772845

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