Question
Boswell Company manufactures two products, Regular and Supreme. Boswells overhead costs consist of machining, $3400000; and assembling, $2300000. Information on the two products is: Regular
Boswell Company manufactures two products, Regular and Supreme. Boswells overhead costs consist of machining, $3400000; and assembling, $2300000. Information on the two products is:
| Regular | Supreme | |
| Direct labor hours | 10000 | 15000 |
| Machine hours | 10000 | 30000 |
| Number of parts | 90000 | 160000 |
Overhead applied to Regular using traditional costing using direct labor hours is
|
| $2090000. |
|
| $3420000. |
|
| $3610000. |
|
| $2280000. |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
