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137. Figure 4-16 Samson Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were

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137. Figure 4-16 Samson Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were computed: $400 per purchase order $24 per machine hour, Process 1 $30 per machine hour, Process 2 $80 per engineering hour Two products are produced by Special Products: L and M. The plant has two manufacturing processes, Process 1 and Process 2. Other processes include engineering, product handling, and procurement. Product L goes through Process 1 while Product M goes through Process 2. The product relational table for Special Products is as follows: Product L: Activity Driver # Activity Usage and Name AWNI Units 200,000 Purchase orders 250 Machine hours 80,000 Engineering hours 1,250 Product M: Activity Driver # Activity Usage and Name AWNI Units 25,000 Purchase orders 125 Machine hours 10,000 Engineering hours 1,500 Refer to Figure 4-16. How much machine overhead cost will be assigned to Product L using Process 1? A. $2,400,000 B. $4,800,000 C. $1,920,000 D. $240,000

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