Question: Hershel 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;

Hershel 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 20000 30000 Machine Setups 500 250 Machine Hours 145 350 Inspections 110 What is the applied overhead to Prep A using activity based costing? 2546465 1529832 1074798 1103535

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