Question
Addison Company manufactures two products, Regular and Supreme. Addisons total overhead costs consist of machining $2,500,000, and assembling $1,250,000. Information on the two products is:
Addison Company manufactures two products, Regular and Supreme. Addisons total overhead costs consist of machining $2,500,000, and assembling $1,250,000. Information on the two products is:
Regular Supreme Total
Direct labor hours 10,000 15,000 25,000
Machine hours (machining) 10,000 30,000 40,000
Number of parts (assembly) 90,000 160,000 250,000
Direct Material Costs $50,000 $75,000
Direct Labor Costs $120,000 $180,000
Units Produced 100,000 20,000
1. Overhead applied to REGULAR using traditional costing based on DIRECT LABOR HOURS is:
2. Overhead Applied to Supreme using traditional costing using direct labor hours is:
3. Total product costs using traditional costing for Regular and Supreme are:
4. Total product costs per unit using traditional costing for Regular and Supreme are:
5. Overhead applied to Regular using activity-based costing is:
6. Overhead applied to Supreme using activity-based costing is:
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