Boswell Company Manufactures Two Products, Regular and Supreme Overhead Applied to Supreme Using Traditional Costing Using Direct Labor

Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: $\begin{array}{lrr}&\text { Regular}&\text { Supreme }\text { Direct labor hours } & 10,000 & 15,000 \\\text { Machine hours } & 10,000 & 30,000 \\\text { Number of parts } & 90,000 & 160,000\end{array}$ Overhead applied to Supreme using traditional costing using direct labor hours is

A) $1,290,000.
B) $1,800,000.
C) $2,700,000.
D) $3,210,000.

Correct Answer:

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