Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is:

1. Overhead applied to Mini A using activity-based costing is
A) $1,800,000.
B) $2,304,000.
C) $2,496,000.
D) $2,880,000.

2. Overhead applied to Mini A using traditional costing using direct labor hours isA) $1,800,000.B) $2,304,000.C) $2,505,000.D) $2,880,000.
3. Overhead applied to Maxi B using traditional costing using direct labor hours isA) $1,920,000.B) $2,304,000.C)$2,505,000.

Transcribed Image Text:

Mini A Direct labor hours 15,000 600 Machine hous 24,000 800 Maxi B 25,000 400 26,000 700 Machine setups Inspections