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0/2 Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $870000; machining-$1980000; and inspecting- $650000.

0/2 Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $870000; machining-$1980000; and inspecting- $650000. Information on the two products is: Mini A Maxi B Direct labour hours 12000 28000 Machine setups 700 500 Machine hours 29000 31000 Inspections 700 600 Overhead applied to Maxi B using activity-based costing is $2450000. O$1332500. $1720667. $1685500. eTextbook and Media

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