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Bonita Company manufactures two products, Mini A and Maxi B. Bonita's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $570000. Information
Bonita Company manufactures two products, Mini A and Maxi B. Bonita's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $570000. Information on the two products is:
Mini A Maxi B
Direct labour hours 20000 25000
Machine setups 600 400
Machine hours 24000 26000
Inspections 800 700
Overhead applied to Maxi B using activity-based costing is
$1278000.
$1612000.
$1641200.
$1861111.
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