Sheffield Company manufactures two products, Mini A and Maxi B. Sheffield's overhead costs consist of setting up machines, $820000; machining, $1950000; and inspecting, $550000. Information on the two products is:

	Mini A	Maxi B
Direct labour hours	19000	21000
Machine setups	700	500
Machine hours	24000	26000
Inspections	800	700

Overhead applied to Mini A using traditional costing and direct labour hours is

$1577000.

$1454250.

$1312500.

$1743000.