Windsor Co$.$ incurs $$1,050,000$ of overhead costs each year in its three main departments, machining $($$$600,000),$ inspections $($$$300,000)$ and packing $($$$150,000).$ The machining department works $4,000$ hours per year, there are $600$ inspections per year, and the packing department packs $1,000$ orders per year. Information about Windsor$$s two products is as follows:

Product X Product Y

Machining hours $1,0003,000$

Inspections $100500$

Orders packed $350650$

Direct labor hours $1,7001,800$

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

Answer rating: 100% (QA)

Windsor Co Overhead Cost Assignment using ActivityBased Costing ABC Windsor Co uses three activity c... View the full answer