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Company manufactures two products, Regular and Supreme. overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: Regular Supreme Direct

Company manufactures two products, Regular and Supreme. 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 Regular using activity-based costing is

a.

$2,700,000

b.

$1,290,000

c.

$1,800,000

d.

$3,210,000

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