Reference no: EM132520475

Waterway Co. incurs $165000 of overhead costs each year in its three main departments, setup ($9200), machining ($107000), and packing ($48800). The setup department performs 30 setups per year, the machining department works 6000 hours per year, and the packing department packs 600 orders per year. Information about Waterway's 2 products is as follows:

                                                             Product One                       Product Two

Number of setups                                 15                               15

Machining hours                                  1200                            4800

Orders packed                                        150                          450

Number of product Manufactured            600                             500

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

Option 1: $82500

Option 2: $62600

Option 3: $126800

Option 4: $102400