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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