Dawson Company Manufactures Two Products,Regular and Deluxe

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 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