Austin Company manufactuerrs two products, Flacca and Gordo. Overhead costs are comprised of machine set-ups $1,600,000; machining $3,600,000; and inspecting $1,200,000. Recent data are shown below:

Flacca Gordo

Direct Labor Hours 15,000 25,000

Machine Setups 600 400

Machine Hours 24,000 26,000

Inspections 800 700

Overhead assigned to Flacca using a single overhead rate based on direct labor hours and using ABC, respectively, would be:

A. $4,000,000 and $2,400,000

B. $4,000,000 and $3,072,000

C. $2,400,000 and $3,328,000

D. $2,400,000 and $3,072,000

(Answer B is incorrect also show all steps involved in the calculation)