Bangor Company manufactures two products, velvesto and Fondant. Banger has estimated overtead costs as follons: setting up machines ($160,000), machining (8300,000) and Inepecting (s100,000). Information on the tHo products follows: Velveete Fondant Direct labor hours 0,000 100,000 Hachine setupe 2,400 1.600 Hachine hours 96,000 104,000 Inapections 3,000 2,000 Banger uses ABC, hen much everhead wil be apoled to velvesto? $300,000 O 1500,000 O 1440,000 O 1200,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
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Bangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows: setting up machines ($160,000), machining (S300,000) and
inapecting ($100,000). Information on the two products follows:
Velveeto Fondant
Direct laber hours 40,000 100,000
Hachine setups
2.400 1,600
Machine hours
96,000 104,000
Inspections
3,000
2,000
Bangor uses ABC, how much everhead nil be appled to Velveeto?
O $300,000
O $s00,000
O 1440,000
O 1200,000
Transcribed Image Text:Bangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows: setting up machines ($160,000), machining (S300,000) and inapecting ($100,000). Information on the two products follows: Velveeto Fondant Direct laber hours 40,000 100,000 Hachine setups 2.400 1,600 Machine hours 96,000 104,000 Inspections 3,000 2,000 Bangor uses ABC, how much everhead nil be appled to Velveeto? O $300,000 O $s00,000 O 1440,000 O 1200,000
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