poodle company manufactures two products mini a and maxi b 502662

Poodle Company manufactures two products, Mini A and Maxi B. Poodle’s overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

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Mini A

Maxi B

Direct labor hours

15,000

25,000

Machine setups

600

400

Machine hours

24,000

26,000

Inspections

800

700

Overhead applied to Mini A using activity-based costing is

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