1. 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: Direct labor hours Machine setups Machine hours Inspections Flacca 15,000 600 24,000 800 Gordo 25,000 400 26,000 700

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1. 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:
Direct labor hours
Machine setups
Machine hours
Inspections
Flacca
15,000
600
24,000
800
Gordo
25,000
400
26,000
700
Overhead assigned to Flacca using a single overhead rate based on direct labor hours and using
ABC, respectively, would be:
Transcribed Image Text:1. 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: Direct labor hours Machine setups Machine hours Inspections Flacca 15,000 600 24,000 800 Gordo 25,000 400 26,000 700 Overhead assigned to Flacca using a single overhead rate based on direct labor hours and using ABC, respectively, would be:
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