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Addison Company manufactures two products, Regular and Supreme. Addison's overhead costs consist of machining, $2,500,000; and...

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 activity-based costing is

Answers:  
A. $1,075,000.
B. $1,500,000.
C. $2,250,000.
D. $2,675,000.

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Expert Solution

ekkarill92 answered 3 years ago
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