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SuperShoes Ltd. incurs $1,050,000 of overhead costs each year in its three main...
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SuperShoes Ltd. incurs $1,050,000 of overhead costs each year in its three main departments, manufacturing ($600,000), quality controls ($300,000) and packing ($150,000).
The manufacturing department works 4,000 hours per year, there are 600 quality controls per year, and the packing department packs 1,000 orders per year.
Information about SuperShoes’s two products MagicFlipFlop & CarbonFlyer is disclosed in the following chart:
Activities
|
MagicFlipFlop
|
CarbonFlyer
|
Total SuperShoes
|
Manufacturing
|
1,000
|
3,000
|
4,000
|
Quality control
|
100
|
500
|
600
|
Packing
|
350
|
650
|
1,000
|
Using ABC, how much overhead is assigned to MagicFlipFlop this year?