Question: * The rate per activity is calculated for each activity, setups, machining, and shipping, and each rate is multiplied by the actual activity. Bergeron Co.

* The rate per activity is calculated for each activity, setups, machining, and shipping, and each rate is multiplied by the actual activity. Bergeron Co. manufactures two printers, Pronto and Speedy. Total overhead of $1,260,000 is incurred by three departments: Setups $80,000; Machining $880,000; and Shipping $300,000. The company also incurs $40,000 of direct labor. Information concerning the two product lines is shown below: Machine setups Machine hours Orders shipped Direct labor costs Pronto 25 6,500 225 $100,000 Speedy. 25 3,500 375 $300,000 Using activity-based costing, how much overhead is assigned to Speedy? O $535,500 $630,000 $945,000 $840,000
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