Paul Company manufactures 2 products, Flacca and Gordo. Overhead costs are comprised of machine set-ups $1,600,200; machining $3,576,800; and inspecting $1,200,320. Recent data are shown below:
Flacca Gordo
Direct labor hours
16,300 26,300
Machine setups
730
530
Machine hours
25,300 27,300
Inspections
930
830
Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC, respectively, will be (round to nearest dollar):
$2,445,000 and $3,281,760.
$2,445,000 and $3,095,560.
$3,945,000 and $3,095,560.
$3,945,000 and $2,445,000.