Berg company incurs 320000 overhead costs each year in its, Ask an Expert

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Berg Company incurs $320,000 overhead costs each year in its three main departments, setup ($20,000), machining ($220,000), and packing ($80,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Berg's two products is as follows:

Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400

Using ABC, how much overhead is assigned to Product B1 each year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9978726

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