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Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2480000; machining, $5750000; and inspecting. $1860000.

Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2480000; machining, $5750000; and inspecting. $1860000. Information on the two products is: Board 12 Case 165 Direct labor hours 15000 25000 Machine setups 600 400 Machine hours 24000 26000 R Inspections 800 700 Overhead applied to Board 12 using activity-based costing is O $3783750. $4850000. O $5240000. $6054000.

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