MA$1-$ #$27$

Flashlight, Inc. makes two types of flashlights and is implementing an activity$-$based costing system.

Previously, all overhead had been applied on the basis of machine hours. The company produces $11,250$

units of the Deluxe model and $21,142$ units of the Compact model. Additional data is as follows:

What is the total overhead cost applied to Compact when all overhead is applied based on machine hours?

$$617$

$$45,000$

$$2,864$

$$36,000$