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

question 142

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: 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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