Canterra Co Using ABC, How Much Overhead Is Assigned to Product One

Multiple Choice

Canterra Co.incurs $540,000 of overhead costs each year in its three main departments, setup ($40,000) , machining ($400,000) , and packing ($100,000) .The setup department performs 50 setups per year, the machining department works 8,000 hours per year, and the packing department packs 200 orders per year.Information about Canterra's 2 products is as follows: $\begin{array}{lll}& \underline{\text { Product One }}& \underline{\text {Product Two }}\\\text { Number of setups } & 10 & 40 \\\text { Machining hours } & 3,000 & 5,000 \\\text { Orders packed } & 110 & 90\end{array}$ Using ABC, how much overhead is assigned to Product One each year?

A) $540,000
B) $327,000
C) $270,000
D) $213,000