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Dawson Company manufactures two products, Regular and Deluxe. Manufacturing overhead costs consist of $2,500,000 with machine hours as the driver, and $1,250,000 with direct labor

Dawson Company manufactures two products, Regular and Deluxe. Manufacturing overhead costs consist of $2,500,000 with machine hours as the driver, and $1,250,000 with direct labor hours as the driver. Other recent data are provided below:

Regular

Deluxe

Direct labor hours

10,000

15,000

Machine hours

10,000

30,000

Number of parts

90,000

160,000

Using machine hours and direct labor hours to assign costs, what is the total overhead assigned to Deluxe?

Group of answer choices

$2,437,500

$2,500,000

$1,125,000

$2,625,000

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