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: Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC, respectively, will be
A)$4,000,000 and $2,400,000.
B)$4,000,000 and $3,072,000.
C)$2,400,000 and $3,328,000.
D)$2,400,000 and $3,072,000.

Question

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:  Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC, respectively, will be
A)$4,000,000 and $2,400,000. 
B)$4,000,000 and $3,072,000. 
C)$2,400,000 and $3,328,000. 
D)$2,400,000 and $3,072,000.

Quizplus · Accepted Answer

The Answer of 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:  Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC, respectively, will be
A)$4,000,000 and $2,400,000. 
B)$4,000,000 and $3,072,000. 
C)$2,400,000 and $3,328,000. 
D)$2,400,000 and $3,072,000.

Austin Company Manufactures 2 Products, Flacca and Gordo