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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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