Author Question: Austin Company manufactures 2 products, Flacca and Gordo. Overhead costs are comprised of machine ... (Read 59 times)

eboni · **on:** Feb 5, 2023

Austin Company manufactures 2 products, Flacca and Gordo. Overhead costs are comprised of machine set-ups $1,600,000; machining $3,600,000; and inspecting $1,200,000. Recent data are shown below:

Flacca

Gordo

Direct labor hours

15,000

25,000

Machine setups

600

400

Machine hours

24,000

26,000

Inspections

800

700

Overhead assigned to Flacca using a single overhead rate based on direct labor hours and using ABC, respectively, will be
◦ $4,000,000 and $3,072,000.
◦ $2,400,000 and $3,328,000.
◦ $4,000,000 and $2,400,000.
◦ $2,400,000 and $3,072,000.

aublw · **Reply #1 on:** Feb 5, 2023

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