Bichon Company manufactures two products, Tini A and Tall B. Bichon's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is: Tini A Tall B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Tall B using traditional costing using direct labor hours is: A) $1,920,000. B) $2,304,000. C) $2,505,000. D) $3,000,000.

Bichon Company manufactures two products, Tini A and Tall B. Bichon's overhead costs consist of setting up machines, $1,200,000; machining, $2,700,000; and inspecting, $900,000. Information on the two products is: Tini A Tall B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Tall B using traditional costing using direct labor hours is: A) $1,920,000. B) $2,304,000. C) $2,505,000. D) $3,000,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 4EB: Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the...

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