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

question 62

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: $$\begin{array} { l c r } & \text { Regular } & \text { Supreme } \\\text { Direct labor hours } & 10,000 & 15,000 \\\text { Machine hours } & 10,000 & 30,000 \\\text { Number of parts } & 90,000 & 160,000\end{array}$$ Overhead applied to Supreme 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:

Social Facilitation Theory

The idea that the presence of others affects an individual's performance, often enhancing the performance on simple tasks and impairing it on complex tasks.

Dominant Response

The most likely action or behavior to be displayed by an individual in a given situation, often resulting from practice, habit, or genetic predisposition.

Evaluation Apprehension

Anxiety or fear regarding being judged or evaluated by others.

Human Cultural Group

A human cultural group refers to people sharing common cultural characteristics, practices, beliefs, and values, distinguishing them from other groups.