Use the Following Information to Answer Questions
Poodle Company

question 26

Multiple Choice

Use the following information to answer questions
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:
$\begin{array}{lll}& \underline{\text { Mini A }}& \underline{\text { Maxi B}} \\\text { Direct labour hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$

-Overhead applied to Mini A using activity-based costing is

• A)$1,275,000.
• B)$1,536,000.
• C)$1,760,000.
• D)$1,920,000.

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Definitions:

Industrial Gas

Gases produced for use in industrial processes, such as oxygen for steel-making or nitrogen and argon for welding.

Merchandise Inventory

Items held for sale in the ordinary course of business, often quantified for accounting and operational purposes.

Monthly Depreciation

The portion of a tangible asset's cost that is allocated as an expense over a month, reflecting the asset's usage and wear and tear.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used for managing liquidity.