Johnstone Company Manufactures Two Products, Board 12 and Case 165

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: $\begin{array}{lrr}&\text { Board 12 }&\text { Case 165 }\\\text { Direct labor hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$
- Overhead applied to Case 165 using activity-based costing is

A) $2,560,000.
B) $3,072,000.
C) $3,328,000.
D) $4,000,000.