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Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $770000; machining- $2020000; and inspecting- $650000. Information

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Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $770000; machining- $2020000; and inspecting- $650000. Information on the two products is: Mini A Maxi B 15000 25000 500 300 Direct labour hours Machine setups Machine hours Inspections 30000 32000 700 600 Overhead applied to Maxi B using traditional costing and direct labour hours is $2150000 $1290000 $1668750 $1743750

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