Zimmerman Company Manufactures Two Products, Board 12 and Case 165

Multiple Choice

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: $$\begin{array} { l r r } & \text { Board 12 } & \text { Case 165 } \\\text { Direct labor hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$$ Overhead applied to Board 12 using traditional costing using direct labor hours is

A) $3,600,000.
B) $4,608,000.
C) $5,010,000.
D) $5,760,000.