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

question 6

Multiple Choice

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: $\begin{array}{lrr}&\text { Product A1 }&\text { Product B1 }\\\text { Number of setups } & 20 & 20 \\\text { Machining hours } & 1,000 & 4,000 \\\text { Orders packed } & 150 & 350 \\\text { Number of products manufactured } & 600 & 400\end{array}$ 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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Definitions:

Subordinates/Team Members

Individuals who report to a higher authority within an organization, contributing to team and organizational goals under supervision.

Performance Objective

A specific goal or target set by an organization or individual to measure effectiveness or success in a particular area.

Challenging

Presenting difficulty or demanding effort, but often providing a valuable opportunity for growth or learning.

Participatory Planning

A planning approach that involves all stakeholders in the decision-making process to ensure outcomes meet their needs and preferences.