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Question -
Q1. 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:
Mini A
Maxi B
Direct labor hours
15,000
25,000
Machine setups
600
400
Machine hours
24,000
26,000
Inspections
800
700
Required - How much is applied overhead assigned for Mini A using activity based costing method?
Q2. Refer to the Poodle Problem Q1. Budgeted overhead for the year was $3,375,000, using a normal capacity based on machine hours of 75,000. How much is the applied overhead for Mini A using the traditional method?
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