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Foxx Company Incurs $480,000 Overhead Costs Each Year in Its

Question 6

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Foxx Company incurs $480,000 overhead costs each year in its three main departments, setup ($30,000) , machining ($330,000) , and packing ($120,000) . 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 Foxx's two products is as follows:  Product A1  Product B1  Number of setups 2020 Machining hours 1,0004,000 Orders packed 150350 Number of products manufactured 600400\begin{array}{lrr}&\text { Product A1 }&\text { Product B1 }\\\text { Number of setups } & 20 & 20 \\\text { Machining hours } & 1,000 & 4,000 \\\text { Orders packed } & 150 & 350 \\\text { Number of products manufactured } & 600 & 400\end{array} Using ABC, how much overhead is assigned to Product A1 each year?


A) $240,000
B) $363,000
C) $ 96,000
D) $117,000

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