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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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