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Boswell Company manufactures two products, Regular and Supreme. Boswells overhead costs consist of machining, $3400000; and assembling, $1700000. Information on the two products is: Regular

Boswell Company manufactures two products, Regular and Supreme. Boswells overhead costs consist of machining, $3400000; and assembling, $1700000. 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 Supreme using activity-based costing is

$2040000.

$3060000.

$1462000.

$3638000.

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