Question

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: 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 direct labor hours is select one:
a. $1,290,000.

b. $1,800,000.

c. $2,700,000.

d. $3,210,000.

Answer 1

Total overhead costs
3000000+1500000=4500000

Total direct labor hours
10000+15000=25000 hours

Predetermined oH rate
4500000÷25000=180

Overhead applied to regular
180×10000 h =1800000...answer