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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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