1A) Sunland Company manufactures two products, Velveeto and Fondant. Sunland has estimated overhead costs as follows: setting up machines ($179000), machining ($319760) and inspecting ($119000). Information on the two products follows:

Velveeto and Fondant
Direct labor hours
Velveeto		79000
Fondant		119000
Machine setups
Velveeto		4300
Fondant		3500
Machine hours
Velveeto		115000
Fondant		123000
Inspections
Velveeto		5100
Fondant		4700

Overhead is applied to Fondant using direct labor hours. What is the total amount of overhead charged to this product line using traditional costing?

$371280

$133735

$309400

$246480

1B)

Oriole Companys overhead rate for machine setups is $120 per setup. A total of 96 setups are estimated for the period. At year-end, it was determined that Products A and B have 51 and 45 setups, respectively. How much is the overhead cost assigned to each product?

Not enough information to determine the answer

Product A $4896, Product B $4896

Product A $6120, Product B $5400

Product A $11520, Product B $4320