Reference no: EM132837042

Bramble Company manufactures two products, Mini A and Maxi B. Bramble's overhead costs consist of setting up machines, $720000; machining, $1990000; and inspecting, $570000. Information on the two products is:

                                            Mini A                 Maxi B

Direct labour hours        14000                    26000

Machine setups                 500                       300

Machine hours                20000                    22000

Inspections                        800                       700

Problem 1: Overhead applied to Maxi B using traditional costing and direct labour hours is

Option 1: $1761500.
Option 2: $1664000
Option 3: $1148000.
Option 4: $2132000.