Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. 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 traditional costing using direct labor hours is: A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000.
Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. 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 traditional costing using direct labor hours is: A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs
consist of machining, $2,000,000; and assembling, $1,000,000. 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 traditional costing using direct labor hours is:
A) $860,000.
B) $1,200,000.
C) $1,800,000.
D) $2,140,000.
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