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Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: Regular
Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. 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:
****Please show your work and how you arrived at your answer. Thank you****
Select one:
a. $1,290,000.
b. $1,800,000.
c. $2,700,000.
d. $3,210,000.
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