Austin Company Manufactures 2 Products, Flacca and Gordo

question 107

Multiple Choice

Austin Company manufactures 2 products, Flacca and Gordo.Overhead costs are comprised of machine set-ups $1,600,000; machining $3,600,000; and inspecting $1,200,000.Recent data are shown below: Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC, respectively, will be

• A)$4,000,000 and $2,400,000.
• B)$4,000,000 and $3,072,000.
• C)$2,400,000 and $3,328,000.
• D)$2,400,000 and $3,072,000.

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