Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $630000. Information on the two products is:
Mini A |
Maxi B |
|
Direct labour hours |
13000 |
24000 |
Machine setups |
600 |
400 |
Machine hours |
29000 |
31000 |
Inspections |
800 |
700 |
Overhead applied to Maxi B using activity-based costing is
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