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Poodle Company

Question 3

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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:
 Mini A  Maxi B Direct labour hours 15,00025,000 Machine setups 600400 Machine hours 24,00026,000 Inspections 800700\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 traditional costing and direct labour hours is


A) $1,280,000.
B) $1,664,000.
C) $1,700,000.
D) $2,125,000.

Correct Answer:

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