Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor 15,000 25,000 hours Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Board 12 using activity-based costing is a) $3,840,000. b) $3,328,000. O $2,400,000. d) $3,072,000