One of Stellar Company's activity cost pools is machine setups, with estimated overhead of $180,000. Stellar produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A) $180,000 B) $72,000 C) $90,000 D) $108,000 21. Bichon Company manufactures two products, Tini A and Tall B. Bichon's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is: Tini A Tall B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Tini A using traditional costing using direct labor hours is A) $1,800,000. B) $2,304,000. C) $2,505,000. D) $2,880,000. 22. Bichon Company manufactures two products, Tini A and Tall B. Bichon's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is: Tini A Tall B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Tall B using traditional costing using direct labor hours is A) $1,920,000. B) $2,304,000. C) $2,505,000. D) $3,000,000. 23. Bichon Company manufactures two products, Tini A and Tall B. Bichon's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is: Tini A Tall B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Tini A using activity-based costing is A) $1,800,000. B) $2,304,000. C) $2,496,000. D) $2,880,000. 24. Bichon Company manufactures two products, Tini A and Tall B. Bichon's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is: Tini A Tall B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Tall B using activity-based costing is A) $1,920,000. B) $2,304,000. C) $2,496,000. D) $3,000,000. 25. Simpson Co. produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Simpson has identified an activity cost pool with allocated overhead of $480,000 for which the cost driver is machine setups. How much overhead is assigned to each product?Earth Wind Fire A) $160,000 $160,000 $160,000 B) $100,000 $75,000 $225,000 C) $120,000 $90,000 $270,000 D) $90,000 $160,000 $230,000 26. Tierra Co, incurs $240,000 overhead costs each year in its three main departments, setup ($15,000), machining ($165,000), and packing ($60,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Tierra's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1,000 4,000 Orders packed 150 350 Number of products manufactured 600 400 If machining hours are used as a base, how much overhead is assigned to Product A1 each year? A) $48,000 B) $120,000 C) $82,500 D) $72,000 27. Tierra Co, incurs $240,000 overhead costs each year in its three main departments, setup ($15,000), machining ($165,000), and packing ($60,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Tierra's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1,000 4,000 Orders packed 150 350 Number of products manufactured 600 400 Using ABC, how much overhead is assigned to Product A1 each year? A) $120,000 B) $181,500 C) $48,000 D) $58,500 28. Tierra Co, incurs $240,000 overhead costs each year in its three main departments, setup ($15,000), machining ($165,000), and packing ($60,000). The setup department performs 40 setups per year, the machining department works 5,000 hours per year, and the packing department packs 500 orders per year. Information about Tierra's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1,000 4,000 Orders packed 150 350 Number of products manufactured 600 400 Using ABC, how much overhead is assigned to Product B1 each year? A) $120,000 B) $96,000 C) $181,500 D) $192,000