Question 12
Thompson Company incurs overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($100,000). Information about Windsor's two products is as follows:
\begin{tabular}{|l|r|r|r|}
\hline
& Product X & Product Y & Total \\
\hline
Machining hours & 1,800 & 2,200 & 4,000 \\
Inspections & 300 & 300 & 600 \\
Orders packed & 700 & 300 & 1,000 \\
Direct labor hours & 1,750 & 1,750 & 3,500 \\
\hline
\end{tabular}
Using ABC, how much overhead is assigned to Product X this year?