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Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $820000; machining, $1960000; and inspecting, $630000. Information
Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $820000; machining, $1960000; and inspecting, $630000. Information on the two products is:
| Mini A | Maxi B | |
| Direct labour hours | 16000 | 20000 |
| Machine setups | 600 | 400 |
| Machine hours | 24000 | 26000 |
| Inspections | 800 | 700 |
Overhead applied to Maxi B using activity-based costing is
|
| $1276000. |
|
| $1641200. |
|
| $1669600. |
|
| $1894444. |
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