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A company incurs $1100000 of overhead each year in three departments, Processing, Packaging, and Testing. The...

A company incurs $1100000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 700 processing transactions, 190000 packaging transactions, and 1800 tests per year in producing 390000 drums of oil and 590000 drums of sludge. The following data are available:

Department Expected use of Driver Cost
Processing 700 $490000
Packaging 190000 490000
Testing 1800 120000


Production information for oil is as follows:

Department Expected use of Driver
Processing 200
Packaging 114000
Testing 1500


Calculate the amount of overhead assigned to oil.

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