Canterra Co

Multiple Choice

Canterra Co.incurs $160,000 of overhead costs each year in its three main departments, setup ($10,000) , machining ($110,000) , and packing ($40,000) .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 Canterra's 2 products is as follows: If machining hours are used as a base, how much overhead is assigned to Product One each year?

A) $32,000
B) $80,000
C) $55,000
D) $48,000