Reference no: EM131751345

Canterra Co. incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000), machining ($110,000), and packing ($40,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Canterra's 2 products is as follows:

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

$32,000
$80,000
$55,000
$48,000