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Caldwell Company manufactures two products, Product A and Product B. The company's overhead costs consist of setting up machines, $130,000; machining, $60,000; and inspecting, $92,000.
Caldwell Company manufactures two products, Product A and Product B. The company's overhead costs consist of setting up machines, $130,000; machining, $60,000; and inspecting, $92,000. Information on the two products is: Product A Product B Total Direct labor hours 32,000 18,000 50,000 Machine setups 340 660 1,000 Machine hours 19,200 10,800 30,000 Inspections 810 690 1,500 Calculate the amount of overhead applied to Product A using activity-based costing, $180,480 $152,281 $132,280 $282,000
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