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: Flacca Gordo
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC,respectively,would 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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The Answer of 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: Flacca Gordo
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC,respectively,would 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

Austin Company Manufactures 2 Products,Flacca and Gordo