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Question 3.

Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $ 1400000; and assembling, $ 700000. Information on the two products is: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Supreme using traditional costing using direct labor hours is $ 840000. $ 490000. $ 1610000. $ 1260000. Estimated costs for activity cost pools and other item(s) are as follows: Machining $ 500000 Assembling 110000 Advertising 450000 Inspecting and testing 85000 Total estimated overhead is $ 1060000. $ 1145000. $ 610000. $ 695000