x Using activity-based costing, overhead is applied using the related cost driver - machine step-ups, machine hours, and inspections, for each of the three cost pools. The rate is multiplied by the actual activity for each cost object. Bangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows: setting up machines ($160,000), machining ($300,000) and inspecting ($100,000). Information on the two products follows: Velveeto and Fondant Direct labor hours Velveeto 60,000 Fondant 100,000 Machine setups Velveeto 2,400 Fondant 1,600 Machine hours Velveeto 96,000 Fondant 104,000 Inspections Velveeto 3,000 Fondant 2,000 If Bangor uses ABC, how much overhead will be applied to Velveeto? If Bangor uses ABC, how much overhead will be applied to Velveeto? $440,000 $300,000 $280,000 $560,000