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Caldwell Company manufactures two products, Product A and Product B. The company's overhead costs consist of setting up machines, $105,000; machining, $50,000; and inspecting, $77,000.
Caldwell Company manufactures two products, Product A and Product B. The company's overhead costs consist of setting up machines, $105,000; machining, $50,000; and inspecting, $77,000. Information on the two products is:
| Product A | Product B | Total | |
| Direct labor hours | 22,000 | 28,000 | 50,000 |
| Machine setups | 240 | 760 | 1,000 |
| Machine hours | 22,200 | 7,800 | 30,000 |
| Inspections | 660 | 840 | 1,500 |
Calculate the amount of overhead applied to Product A using activity-based costing.
| $102,081 | ||
| $232,000 | ||
| $96,080 | ||
| $102,080 |
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