Thomsen Computer Company Produces Three Products: Earth, Wind, and Fire

Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $960,000 for which the cost driver is machine setups. How much overhead is assigned to each product? $\begin{array}{llll}&\text { Earth}&\text { Wind}&\text { Fire }\\\text { a. } & \$ 320,000 & \$ 320,000 & \$ 320,000 \\\text { b. } & \$ 200,000 & \$ 150,000 & \$ 450,000 \\\text { c. } & \$ 240,000 & \$ 180,000 & \$ 540,000 \\\text { d. } & \$ 180,000 & \$ 320,000 & \$ 460,000\end{array}$

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