Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $1200000; and assembling, $600000. 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 traditional costing using direct labor hours is O $1410000. O $1080000. O $720000. O $390000.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $1200000;
and assembling, $600000. 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 traditional costing using direct labor hours is
O $1410000.
O $1080000.
O $720000.
O $390000.
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Transcribed Image Text:Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $1200000; and assembling, $600000. 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 traditional costing using direct labor hours is O $1410000. O $1080000. O $720000. O $390000. Attempts: 0 of 1 used Submit Answer Save for Later %23
Expert Solution
Step 1

First, compute the total estimated overhead as shown below:

Total estimated overhead = $1,200,000 + $600,000

Total estimated overhead = $1,800,000

 

 

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