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

question 46

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 B1 each year?

• A) $240,000
• B) $192,000
• C) $363,000
• D) $384,000

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Definitions:

Model Penal Code

A text designed to stimulate and assist U.S. state legislatures to update and standardize the penal law of the United States.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights and liabilities, allowing it to enter into contracts, own assets, and be liable for its actions.

Criminal Offense

An act punishable by law, typically involving harm to society or a breach of public order.

Fifth Amendment

A provision of the United States Constitution that grants individuals rights against self-incrimination, double jeopardy, and mandates due process of law.