Number of setups 20 20 Machining hours 1000 4000 Orders packed 150 350 Number of products manufactured 600 400 If machining hour
s are used as a base under traditional casting, how much overhead is assigned to Product A1 each year?
1 answer:
Answer:
$96,000
Explanation:
The computation of the overhead amount assigned to Product A1 each year is shown below:
= Overhead cost incurred per year ÷ number of hours worked by machine department × machine hours at Product A1
= $480,000 ÷ 5,000 hours × 1,000 hours
= $96,000
We simply applied the above formula so that the overhead cost assigned could come
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