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    Allocating Overhead By Number of Setups

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    I have a multiple choice problem that I need assistance with.

    GoFish Inc. has an overhead rate for machine setups of $200 per machine setup, for a total of $56,000 of overhead. The company produces two products; Product Salamander and Product Gold, which require 160 and 120 setups each, respectively. The overhead assigned to each product is:
    Salamander Gold
    A) $28,000 $28,000
    B) $24,000 $32,000
    C) $30,000 $26,000
    D) $32,000 $24,000

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    Solution Summary

    This solution helps with a cost accounting problem.