QUESTION 1 Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, 1.200,000, machining 52.700.000 and inspecting 5900,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Board 12 using activity-based costing is 31.800.000 22.304.000 52.47.000 2.30.000