A)

B)

Gamma Co. manufactures two different products: Prep Alpha and Prep Beta. Budgeted overhead costs fall under the following categories: setting up machines, $500,000; machining, $2,800,000; and inspecting, $800,000. Budgeted information on the two products for the year are as follows: Prep A Prep B Direct Labour Hours 1525 1485 Machine Setups 148 258 Machine Hours 14888 14795 Inspections 147 398 What is the applied overhead to Prep B using traditional costing with direct labour hours as the cost driver? 2077243 4100000 2022757 Cheat Co. manufactures two different products: Prep Alpha and Prep Beta. Budgeted overhead costs fall under the following categories: setting up machines, $500,000; machining, $2,800,000; and inspecting, $800,000. Budgeted information on the two products for the year are as follows: Prep Alpha Prep Beta Direct Labour Hours 48911 14895 Machine Setups 1456 1456 Machine Hours 1458 1456 Inspections 258 What is the applied overhead to Prep A using activity based costing? 487