Ayala IncComputed an Overhead Rate for Machining Costs $1,500,000 of $15

Multiple Choice

Ayala Inc.computed an overhead rate for machining costs $1,500,000 of $15 per machine hour.Machining costs are driven by machine hours.If computed based on direct labor hours,the overhead rate for machining costs would be $30 per direct labor hour.The company produces two products,Hammer and Tong.Hammer requires 60,000 machine hours and 20,000 direct labor hours,while Tong requires 40,000 machine hours and 30,000 direct labor hours.Using activity-based costing,machining costs assigned to each product is
Hammer $~~~~~~~~$$~~~~~~~~$ Tong

A) $600,000 $~~~~~~~~$ $900,000
B) $750,000 $~~~~~~~~$ $750,000
C) $800,000 $~~~~~~~~$ $700,000
D) $900,000 $~~~~~~~~$ $600,000