Berg Company incurs $320,000 overhead costs each year in its three main departments, setup ($20,000), machining ($220,000), and packing ($80,000). 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 Berg's two products is as follows:
If machining hours are used as a base, how much overhead is assigned to Product A1 each year?
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$64,000
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$160,000
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$110,000
$96,000
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Cost of goods sold
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only appears on merchandising companies' income statements.
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only appears on manufacturing companies' income statements.
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appears on both manufacturing and merchandising companies' income statements.
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is calculated exactly the same for merchandising and manufacturing companies.
7.Relevant costs are always
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fixed costs.
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variable costs.
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avoidable costs.
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sunk costs.
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