company manufactures two products, Board 12 and Case 165 and applies overhead on the basis of direct labor hours. Johnstone's overhead costs of $6,400,000 consist of setting up machines, S1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 26,000 Inspections 800 700 24,000 Overhead applied to Board 12 using traditional costing is; a) $2,400,000. b) $3,072,000 c c) $3,840,000 C d) $3,340,000