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

A) $80,000
B) $64,000
C) $121,000
D) $128,000