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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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