Poodle Company manufactures two products, Mini A and Maxi B. Poodle’s overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:
|
Mini A |
Maxi B |
|
|
Direct labor hours |
15,000 |
25,000 |
|
Machine setups |
600 |
400 |
|
Machine hours |
24,000 |
26,000 |
|
Inspections |
800 |
700 |
Overhead applied to Mini A using activity-based costing is