Business, 12.03.2020 17:24 docholiday

Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs:

Setting up equipment $350,000
Other overheard $1,320,000

Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows:

Fudge Cookies
Units produced 8,000 445,000
Setup hours 5,600 1,400
Oven hours 1,000 7,000

How much total overhead is assigned to Fudge using ABC?

Answers: 2

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