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Aljazeerah, Inc. produces two different products (Product C and Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and
Aljazeerah, Inc. produces two different products (Product C and Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $750,000, while the cost of Inspection is $90,000. The activity drivers are used as follows: Machine hours Number of batches Product C Product 2 Total 1,000 3,000 4,000 45 15 60 The cost of direct material included in product C is $45,000 and the cost of the direct labor is $200,000. Answer the following: 1. Under ABC, how much overhead will be allocated to Product C? 2. What will be the total cost of Product C
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