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Ashley Company manufactures two models of its sofas, the Mini and the Max. The estimated annual overhead is 51,550,000. The Mini model requires 15.000 direct

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Ashley Company manufactures two models of its sofas, the Mini and the Max. The estimated annual overhead is 51,550,000. The Mini model requires 15.000 direct labor hours and the Mart model requires 15.000 direct for hours. The company produces 3.000 units of the Mini model and 2.000 units of the Maxi modelech year. The company produces the Mini model in batch sues of 40, while it produces the Maxi model in batch sizes of 200. The company expects to incur $560,000 of total setup costs this year. Assuming direct labor hours is the plantwice Ovechead base, how much overhead would be allocated to the Maxi model using the traditional costing approach 51,050,000 51,050.000 51,080,000 31.085.000

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