Reference no: EM132541484

Coronado Co. incurs $535000 of overhead costs each year in its three main departments, setup ($44000), machining ($391000), and packing ($100000). The setup department performs 50 setups per year, the machining department works 8000 hours per year, and the packing department packs 200 orders per year. Information about Coronado's 2 products is as follows:

                                  Product One           Product Two

Number of setups             30                        20

Machining hours              3200                       4800

Orders packed                  120                          80

Question 1: Using ABC, how much overhead is assigned to Product One each year?

Option 1: $535000

Option 2: $292200

Option 3: $267500

Option 4: $242800