How much overhead is assigned to product each year

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Question - Berg Company incurs $240,000 overhead costs each year in its three main departments, setup ($15,000), machining ($165,000), and packing ($60,000). 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 Berg's two products is as follows:

Product A1: Number of setups = 20; Machining hours= 1,000; Orders packed= 150; Number of products manufactured=600;

Product B1: 20, 4000, 350, and 400 consecutively.

If machining hours are used as a base, how much overhead is assigned to Product A1 each year?

$48,000;

$120,000;

$82,500;

$72,000.

Reference no: EM132209044

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