Q 57

TopCo manufactures two types of gadgets: Regular and Deluxe. The firm's overhead consists of the following: $375,000 in setup costs with number of setups as the driver; $1,500,000 in machining costs with machine hours as the driver; and $750,000 in packing costs with packing orders as the driver. Data for the current period follow: Regular Deluxe Number of setups 200 400 Machine hours 2,500 5,000 Packing orders 100 275 Units produced 1,500 2,250 What is the total overhead allocated to Regular gadgets under activity-based costing? O $875,000 O $1,050,000 O $825,000 O $1,750,000