1. 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 Supreme using activity-based costing is

   	A.	$1,075,000.
   	B.	$1,500,000.
   	C.	$2,250,000.
   	D.	$2,675,000.

Answer rating: 100% (QA)

Overheads Total Overhead Machining 2500000 Assembling 1250000 Regular Supreme Total Di... View the full answer