Use the following information to answer the questions below. 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:
Direct labour hours | 15,000 | 25,000 |
Machine hours | 24,000 | 26,000 |
Overhead applied to Maxi B using activity-based costing is
Use the following information to answer the questions below. 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:
Direct labour hours | 15,000 | 25,000 |
Machine hours | 24,000 | 26,000 |
Overhead applied to Maxi B using traditional costing and direct labour hours is