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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
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: Direct labor hours: Board 12- 15,000; Case 165- 25,000; Machine setups: Board 12- 600; Case 165- 400; Machine hours: Board 12- 24,000; Case 165- 26,000; Inspections: Board 12- 800; Case 165- 700. Overhead applied to Board 12 using traditional costing using direct labor hours is $2,400,000. How do you get this answer?
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