Addison%20Company%20manufactures%20two%20products%2C%20Regular%20and%20Supreme.%

Question

Addison%20Company%20manufactures%20two%20products%2C%20Regular%20and%20Supreme.%20Addison%E2%80%99s%20overhead%20costs%20consist%20of%20machining%20%242%2C500%2C000%3B%20and%20assembling%20%241%2C250%2C000.%20Information%20on%20the%20two%20products%20is%3A%0A%0A%09Regular%09Supreme%20%20%09%09%20Total%20%20%0ADirect%20labor%20hours%0910%2C000%0915%2C000%09%09%2025%2C000%0A%0AMachine%20hours%0910%2C000%0930%2C000%09%09%2040%2C000%0ANumber%20of%20parts%0990%2C000%09160%2C000%09%09250%2C000%0A%0ADirect%20Material%20Costs%09%20%20%20%2450%2C000%09%2475%2C000%09%09%0A%0ADirect%20Labor%20Costs%09%24120%2C000%09%24180%2C000%0A%0AUnits%20Produced%20%09100%2C000%20%0920%2C000%0A%0A33.%20Overhead%20applied%20to%20Regular%20using%20traditional%20costing%20using%20direct%20labor%20hours%20is%0A%0Aa.%09%241%2C075%2C000.%0Ab.%09%241%2C500%2C000.%0Ac.%09%242%2C250%2C000.%0Ad.%09%242%2C675%2C000.%0A%0A34.%20Overhead%20applied%20to%20Supreme%20using%20traditional%20costing%20using%20direct%20labor%20hours%20is%0A%0Aa.%09%241%2C075%2C000.%0Ab.%09%241%2C500%2C000.%0Ac.%09%242%2C250%2C000.%0Ad.%09%242%2C675%2C000.%0A%0A35.%20Total%20Product%20costs%20using%20traditional%20costing%20for%20Regular%20and%20Supreme%20respectively%20are%0A%0Aa.%09%242%2C505%2C000%2C%20%241%2C670%2C000%0Ab.%09%241%2C500%2C000%2C%20%242%2C250%2C000%0Ac.%09%242%2C250%2C000%2C%20%241%2C500%2C000%0Ad.%09%241%2C670%2C000%2C%20%242%2C505%2C000%0A%0A36.%20Total%20Product%20costs%20per%20unit%20using%20traditional%20costing%20for%20Regular%20and%20Supreme%20are%0A%09%0Aa.%09%2416.70%2C%20%24125.25%0Ab.%09%2415.00%2C%20%24100.62%0Ac.%09%2410.62%2C%20%24150.00%0Ad.%09%2418.000%2C%20%24110.75%0A%0A37.%20Overhead%20applied%20to%20Regular%20using%20activity-based%20costing%20is%0A%0Aa.%09%241%2C075%2C000%20%0Ab.%09%241%2C500%2C000.%0Ac.%09%242%2C250%2C000.%0Ad.%09%242%2C675%2C000.%0A%0A38.%20Overhead%20applied%20to%20Supreme%20using%20activity-based%20costing%20is%0A%0Aa.%09%241%2C075%2C000.%0Ab.%09%241%2C500%2C000.%0Ac.%09%242%2C250%2C000.%0Ad.%09%242%2C675%2C000.%0AAddison%20(cont.)%0A%0A39.%20Total%20Product%20costs%20using%20ABC%20for%20Regular%20and%20Supreme%20respectively%20are%0A%0Aa.%09%241%2C245%2C000%2C%20%242%2C930%2C000%0Ab.%09%241%2C500%2C000%2C%20%243%2C250%2C000%0Ac.%09%242%2C250%2C000%2C%20%241%2C075%2C000%0Ad.%09%242%2C930%2C000%2C%20%241%2C245%2C000%0A%0A40.%20Total%20Product%20costs%20per%20unit%20using%20ABC%20for%20Regular%20and%20Supreme%20respectively%20are%0A%0Aa.%09%2412.45%2C%20%20%24146.50%0Ab.%09%2415.00%2C%20%20%24100.62%0Ac.%09%24146.50%2C%20%2412.45%0Ad.%09%2418.00%2C%20%20%24110.75%0A%0A%09%0941.%20Under%20ABC%2C%20Addison%20found%20that%20they%20have%0Aa.%09been%20under%20costing%20high%20volume%20products%20and%20overcosting%20low%20volume%20products.%0Ab.%09been%20over%20costing%20high%20volume%20products%20and%20under%20costing%20low%20volume%20products.%0Ac.%09no%20change%20to%20costing%20high%20volume%20products%20and%20low%20volume%20products.%0Ad.%09none%20of%20the%20above.

Explanation / Answer

$2,675,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.