Sheffield Company manufactures two products, Mini A and Maxi B. Sheffield's overhead costs consist of...
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Sheffield Company manufactures two products, Mini A and Maxi B. Sheffield's overhead costs consist of setting up machines, $820000; machining, $1950000; and inspecting, $550000. Information on the two products is:
|
| Mini A | Maxi B |
| Direct labour hours | 19000 | 21000 |
| Machine setups | 700 | 500 |
| Machine hours | 24000 | 26000 |
| Inspections | 800 | 700 |
Overhead applied to Mini A using traditional costing and direct labour hours is
|
| $1577000. |
|
| $1454250. |
|
| $1312500. |
|
| $1743000. |
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