Addison Company Manufactures Two Products, Regular and Supreme - Overhead Applied to Regular Using Activity-Based Costing Is
A)$1,075,000

question 17

Multiple Choice

Addison Company manufactures two products, Regular and Supreme.Addison's overhead costs consist of machining, $2,500,000; and assembling, $1,250,000.Information on the two products is: $$\begin{array} { l c c } & \text { Regular } & \text { Supreme } \\\text { Direct labor hours } & 10,000 & 15,000 \\\text { Machine hours } & 10,000 & 30,000 \\\text { Number of parts } & 90,000 & 160,000\end{array}$$
- Overhead applied to Regular using activity-based costing is

• A)$1,075,000.
• B)$1,500,000.
• C)$2,250,000.
• D)$2,675,000.

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Definitions:

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Declaration Date

The specific date on which a company's board of directors announces its next dividend payment or stock dividend.

Legal Obligation

A duty enforced by law, requiring an entity or individual to perform or refrain from performing a certain action.

Date of Record

The date set by a corporation upon which the shareholders must be registered to be eligible to receive dividends or participate in corporate voting.