Poodle Company manufactures two products, Mini A and Maxi B.

Poodle's overhead costs consist of setting up machines, $800,000;

machining, $1,800,000; and inspecting, $600,000. Information on

the two products is:

Mini A Maxi B

Direct labor hours 15,000 25,000

Machine setups 600 400

Machine hours 24,000 26,000

Inspections 800 700

1. How much is applied overhead assigned for Mini A using activity based costing method?

2. Refer to the Poodle Problem. Budgeted overhead for the year was $3,375,000, using a normal capacity based on machine hours of 75,000. How much is the applied overhead for Mini A using the traditional method?