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Business, 19.10.2021 01:00 ibidnnudny2584

Addison Company manufactures two products, Regular and Supreme. Addison’s overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is:
Regular Supreme
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts
90,000
160,000
Overhead applied to Regular using traditional costing using direct labor hours is
a. $1,075,000.
b. $1,500,000.
c. $2,250,000.
d. $2,675,000.

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