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Bowser Company manufactures two products, Regular and Supreme. Bowsers overhead costs consist of machining (machine hours), $2,600,000 and assembling (number of parts), $1,300,000. Information on
Bowser Company manufactures two products, Regular and Supreme. Bowsers overhead costs consist of machining (machine hours), $2,600,000 and assembling (number of parts), $1,300,000. Information on the two products is:
Regular | Supreme | |
Direct Labor Hours | 5,000 | 7,500 |
Machine Hours | 3,000 | 10,000 |
Number of Parts | 45,000 | 80,000 |
What is the overhead applied to Supreme using traditional costing using direct labor hours?
Group of answer choices
$3,900,000
$2,340,000
$1,560,000
$1,000,000
$1,300,000
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