Space Toy Company manufactures Z-O-Tron. Space's overhead costs consist of setting up machines, machining, and inspecting. Information on the product is:

Number of machine setups	600
Price per setup	$200
Machine hours	24,000
Machine hour rate	$9
Number of inspections	800
Price per inspection	$100

Overhead applied to Z-O-Tron using activity-based costing is:

• $384,000.

• $480,000.

• $416,000.

• $300,000.