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Jasper Co. manufacturers two products, A & B. Jasper Co.'s overhead costs consist of setting up machines, \$800,000; machining, \$1,800,000, and inspecting, \$600,000. See more info below about the products:
A. B.
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700

Q1. How much overhead is applied to A using traditional cost using direct labor hours?
Q2. How much overhead is applied to B using activity-based costing?

#### Solution Preview

Setting Up Machines - \$800,000

Machining - \$1,800,000

Inspecting - \$600,000

Total = \$3,200,000

Q1. How much ...

#### Solution Summary

This solution provides calculations for the amount of overhead applied to situations regarding traditional and activity-based costing.

\$2.49