Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Board 12 using traditional costing using direct labor hours is a.) 2,400,000 b.) 3,072,000 c.) 3,340,000 d.) 3,840,000
Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's
Board 12 Case 165
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Board 12 using traditional costing using direct labor hours is
a.) 2,400,000
b.) 3,072,000
c.) 3,340,000
d.) 3,840,000
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