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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:
Regular Supreme
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000
Overhead applied to Regular using activity-based costing is
Question 3
Which best describes the flow of overhead costs in an activity-
based costing system?
Question 4
An activity-based overhead rate is computed as follows:
Question 5
Estimated costs for activity cost pools and other item(s) are as
follows:
Machining $500,000
Assembling 200,000
Advertising 450,000
Inspecting and testing 175,000
Total estimated overhead is
Question 6