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Sheffield Company manufactures two products, Regular and Supreme. Sheffield's estimated overhead costs consist of machining. $3400000; and assembling, $800000. Information on the estimated use
Sheffield Company manufactures two products, Regular and Supreme. Sheffield's estimated overhead costs consist of machining. $3400000; and assembling, $800000. Information on the estimated use of the cost driver by the two products is as follows: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to Regular using traditional costing using direct labor hours is O $2100000. O $1680000 $590000. $1500000.
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