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Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2800000; machining, $5300000; and inspecting, $2100000. Information
Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2800000; machining, $5300000; and inspecting, $2100000. Information on the two products is: Direct labor hours Machine setups Machine hours Inspections Board 12 O $4856000. $6120000. O $5220000. O $3825000. 15000 600 24000 800 Case 165 25000 400 26000 700 Overhead applied to Board 12 using traditional costing using direct labor hours is
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