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