Boswell Company Manufactures Two Products, Regular and Supreme Overhead Applied to Supreme Using Activity-Based Costing Is
A)$1,290,000

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 activity-based costing is

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

Correct Answer:

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