Dawson Company Manufactures Two Products, Regular and Deluxe

question 60

Multiple Choice

Dawson Company manufactures two products, Regular and Deluxe.Overhead costs consist of machining, $2,500,000; and assembly, $1,250,000.Recent data are provided below: Overhead allocated to Regular using a single overhead rate (based on number of parts) and using activity-based costing, respectively, are

• A)$2,400,000 and $2,625,000.
• B)$937,500 and $2,812,500.
• C)$1,350,000 and $1,125,000.
• D)$1,075,000 and $2,675,000.

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Definitions:

National Distribution

The process of distributing products or goods across an entire country, often involving multiple transportation and logistics strategies.

Grams

A metric unit of mass equal to one thousandth of a kilogram, often used to measure small quantities of material.

Materials Standards

The expected cost and quantity of materials required for the production of goods, used as a benchmark for evaluating performance.

Labour Hours

The total number of hours worked by employees during a specific period, often used to measure labor input in producing goods or services.