Boswell Company Manufactures Two Products, Regular and Supreme Overhead Applied to Regular Using Traditional Costing Using Direct Labor

question 133

Multiple Choice

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: $\begin{array}{lrr}&\text { Regular}&\text { Supreme }\text { Direct labor hours } & 10,000 & 15,000 \\\text { Machine hours } & 10,000 & 30,000 \\\text { Number of parts } & 90,000 & 160,000\end{array}$ Overhead applied to Regular using traditional costing using direct labor hours is

• A)$1,290,000.
• B)$1,800,000.
• C)$2,700,000.
• D)$3,210,000.

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Definitions:

Cost Containment

Strategies or measures aimed at controlling or reducing healthcare costs without compromising the quality of care.

Process And Outcomes

The sequence of actions or steps taken to achieve a particular end and the results obtained from these actions.

Physician's Assessment

A comprehensive evaluation conducted by a doctor to diagnose a patient's condition, involving history taking, physical examination, and sometimes diagnostic tests.

Collaboration In Health Care

The process in which different health care professionals and organizations work together to improve patient care and outcomes.