Answer:
a. $2,700,000
Explanation:
Using traditional costing the overhead are applied as,
Total overhead costs = 3000,000+1500,000 = $4,500,000
Total labor hours (base) = 10,000+ 15,000 = 25,000 hours
Per hour rate = 4,500,000 / 25,000 = 180/ hour
Total applied to Supreme = 180 * 15,000 = $2,700,000
All the overheads are applies evenly using total hours as base, avoiding the activity basis.
Hope that helps.
