Overhead costs consist of machining

Reference no: EM13124511

Donkey Company manufactures two products, Standard and DeLuxe. Donkey's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is:

Standard DeLuxe
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000

Overhead applied to Standard using activity-based costing is:

A) $860,000.

B) $1,200,000.

C) $1,800,000.

D) $2,140,000.

Reference no: EM13124511

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