Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines- $840000; machining- $1960000; and inspecting- $570000. Information on the two products is: Mini A Maxi B Direct labour hours 16000 21000 Machine setups 700 500 Machine hours 27000 29000 Inspections 800 700 Overhead applied to Mini A using activity-based costing is ○ $1624821. ○ $1739000. $1457297. ○ $1965833.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines-
$840000; machining- $1960000; and inspecting- $570000. Information on the two products is:
Mini A
Maxi B
Direct labour hours
16000
21000
Machine setups
700
500
Machine hours
27000
29000
Inspections
800
700
Overhead applied to Mini A using activity-based costing is
○ $1624821.
○ $1739000.
$1457297.
○ $1965833.
Transcribed Image Text:Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines- $840000; machining- $1960000; and inspecting- $570000. Information on the two products is: Mini A Maxi B Direct labour hours 16000 21000 Machine setups 700 500 Machine hours 27000 29000 Inspections 800 700 Overhead applied to Mini A using activity-based costing is ○ $1624821. ○ $1739000. $1457297. ○ $1965833.
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