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Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $2,000,000; and inspecting, $600,000. Information

Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $2,000,000; and inspecting, $600,000. Information on the two products is: Mini A Maxi B Direct labour hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Maxi B using traditional costing and direct labour hours is $1,280,000. $1,664,000. $1,700,000. $2,125,000.

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