Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000 of machining costs, with machine hours as the driver, and $1,250,000 of assembly costs, with direct labor hours as the driver. Other recent data are provided below: Direct labor hours Machine hours Number of parts Regular 10,000 10,000 90,000 $2,500,000 $1,600,000 O $2,400,000 $1,350,000 Deluxe 15,000 30,000 160,000 What is the total overhead allocated to Deluxe under a traditional allocation based on number of parts?

Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000 of machining costs, with machine hours as the driver, and $1,250,000 of assembly costs, with direct labor hours as the driver. Other recent data are provided below: Direct labor hours Machine hours Number of parts Regular 10,000 10,000 90,000 $2,500,000 $1,600,000 O $2,400,000 $1,350,000 Deluxe 15,000 30,000 160,000 What is the total overhead allocated to Deluxe under a traditional allocation based on number of parts?

Name: Dawson Company manufactures two products, Regular and Deluxe. Overhea
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Description: Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000 of machining costs, withmachine hours as the driver, and $1,250,000 of assembly costs, with direct labor hours as the driver. Other recent data are pr

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 1E: Kennedy Appliance Inc.s Machining Department incurred 450,000 of factory overhead cost in producing...

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