Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000 of machining costs, with machine hours as the driver, and $1,250,000 of assembly costs, with direct labor hours as the driver. Other recent data are provided below: Direct labor hours Machine hours Number of parts Regular 10,000 10,000 90,000 $2,500,000 $1,600,000 O $2,400,000 $1,350,000 Deluxe 15,000 30,000 160,000 What is the total overhead allocated to Deluxe under a traditional allocation based on number of parts?

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Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000 of machining costs, with
machine hours as the driver, and $1,250,000 of assembly costs, with direct labor hours as the driver. Other recent data are provided
below:
Direct labor hours
Machine hours
Number of parts
Regular
10,000
10,000
90,000
$2,500,000
$1,600,000
O $2,400,000
O $1,350,000
Deluxe
15,000
30,000
160,000
What is the total overhead allocated to Deluxe under a traditional allocation based on number of parts?
Transcribed Image Text:Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000 of machining costs, with machine hours as the driver, and $1,250,000 of assembly costs, with direct labor hours as the driver. Other recent data are provided below: Direct labor hours Machine hours Number of parts Regular 10,000 10,000 90,000 $2,500,000 $1,600,000 O $2,400,000 O $1,350,000 Deluxe 15,000 30,000 160,000 What is the total overhead allocated to Deluxe under a traditional allocation based on number of parts?
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