68. Addison Company manufactures two products, Regular and Supreme. Addison's overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is: Regular 10,000 Supreme 15,000 Direct labor hours Machine hours 10,000 90,000 30,000 Number of parts Overhead applied to Regular using traditional costing using direct labor hours is a. $1,075,000 b. $1,500,000 c. $2,250,000 d. $2,675,000 160,000 Ans: b. LO: 4, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Mgmt