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Question(s) / Instruction(s):

Poodle Company manufactures two products, Mini (A) and Maxi (B). Poodle\'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:

                                       Mini (A)                Maxi (B)

Direct labor hours            15,000                   25,000

Machine setups                   600                         400

Machine hours                  24,000                   26,000

Inspections                         800                         700

Overhead applied to Mini (A) using activity-based costing is

A.            $1,800,000

B.            $2,304,000

C.            $2,496,000

D.            $2,880,000

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