Boswell Company Manufactures Two Products, Regular and Supreme Overhead Applied to Supreme Using Activity-Based Costing Is
A) $1,290,000

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

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