Bangor Company makes products C and D. Information for overhead costs and for the two products appears below. The company makes 50,000 units of product C each year and 20,000 units of product D.
| Activity |
Driver |
Total Overhead Cost |
Prod C Usage |
Prod D usage |
| Setups |
# of setups |
$200,000 |
500 setups |
1,500 setups |
| Ordering parts |
# of parts |
$300,000 |
60,000 parts |
40,000 parts |
| Machining |
MH |
$600,000 |
12,000 MH |
6,000 MH |
| Inspections |
# of Insp |
$400,000 |
10,000 Insp |
40,000 Insp |
| Shipping |
# of shipments |
$300,000 |
10,000 Ship |
10,000 Ship |
| Total overhead |
|
$1,800,000 |
| * MH - Machine Hours |
Insp - Inspections |
Ship - Shipments |
Assume that all overhead is assigned to products using machine hours. How much overhead would be assigned to each unit of Product D?