Use the Following Information to Answer Questions
Poodle Company

question 58

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 Maxi B using activity-based costing is

• A)$1,280,000.
• B)$1,640,000.
• C)$1,664,000.
• D)$2,125,000.

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