In: Accounting
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.