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Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $2800000; and...

Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $2800000; and assembling, $1400000. Information on the two products is:

Regular Supreme
Direct labor hours 10000 15000
Machine hours 10000 30000
Number of parts 90000 160000


Overhead applied to Regular using activity-based costing is

$1680000.

$2520000.

$1204000.

$2996000.

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Answer #1

Answer: overhead costs of machining = (* 2800000/(10,000 +30,000)) x10,000 =($9800060/40,000)X10,000 (marching = 70 X 10,000

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