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

question 68

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: $$\begin{array} { l r r } & \text { Product One } & \text { Product Two } \\\text { Number of setups } & 10 & 40 \\\text { Machining hours } & 3,000 & 5,000 \\\text { Orders packed } & 110 & 90\end{array}$$ Using ABC, how much overhead is assigned to Product One each year?

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

---

Definitions:

Stimulation

Engagement or excitation of the sensory, physical, or mental faculties, often leading to increased activity or responsiveness.

Reliable Measure

is an assessment tool or method that consistently produces accurate and dependable results over time.

Bowlby

A psychologist best known for developing attachment theory, which emphasizes the importance of early emotional bonds formed between children and their caregivers.

Detachment

The emotional state of being impartial or aloof from others, often considered a mechanism to avoid distress or disappointment.