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Addison Company manufactures two products, Regular and Supreme. Addisons overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is: Regular

Addison Company manufactures two products, Regular and Supreme. Addisons overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is:

Regular Supreme

Direct labor hours 10,000 15,000

Machine hours 10,000 30,000

Number of parts 90,000 160,000

Overhead applied to Supreme using activity-based costing is

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