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Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows:   Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year? $ 245000 $ 490000 $ 343000 $ 476000

Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows:   Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year? $ 245000 $ 490000 $ 343000 $ 476000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2EB: Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine...
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Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows:

  Product X Product Y
Machining hours 1000 3000
Inspections 100 400
Orders packed 350 650
Direct labor hours 1700 1800


Using ABC, how much overhead is assigned to Product X this year?

$ 245000
$ 490000
$ 343000
$ 476000
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