Dawson Company Manufactures Two Products,Regular and Deluxe

question 2

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: Regular Deluxe
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000
Overhead allocated to Deluxe 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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