Zimmerman Company Manufactures Two Products, Board 12 and Case 165

Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2,400,000; machining, $5,400,000; and inspecting, $1,800,000. Information on the two products is: $\begin{array}{lrr}&\text { Board } 12& \text { Case } 165\\\text { Direct labor hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$ Overhead applied to Case 165 using activity-based costing is

A) $3,840,000.
B) $4,608,000.
C) $4,992,000.
D) $6,000,000.

Correct Answer:

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