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 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.

Question

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 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.

Quizplus · Accepted Answer

The Answer of 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 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.

Dawson Company Manufactures Two Products, Regular and Deluxe