The Mississauga plant of a pharmaceutical distribution company handled 2,750,000 cases of products during the last year, while the Brampton plant handled 2,250,000 cases. How will overhead costs of $2,500,000 for the year be allocated between the two plants if based on the number of cases handled?

Overhead Costs

The indirect expenses related to the operation of a business, such as rent, utilities, and administrative salaries, that are not directly tied to a specific product or service.

Pharmaceutical Distribution

The process of getting pharmaceutical products from the manufacturer to pharmacies, hospitals, and other end-points where they will be sold or dispensed.