Asked by Madison Zurweller on Jun 25, 2024
Verified
The unit product cost of Product J8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A) $752.61 per unit
B) $1,089.21 per unit
C) $1,301.97 per unit
D) $860.16 per unit
Unit Product Cost
The total cost incurred to produce, store, and sell one unit of a product, including direct materials, direct labor, and allocated overhead.
- Compute fixed overhead rates by employing standard costing methods.
- Calculate the attribution of overhead costs to products using customary costing practices.
Verified Answer
KF
Keith FerranteJun 27, 2024
Final Answer :
B
Explanation :
Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $1,406,733 ÷ 20,100 DLHs = $69.99 per DLH (rounded)
Computation of traditional unit product cost:
= $1,406,733 ÷ 20,100 DLHs = $69.99 per DLH (rounded)
Computation of traditional unit product cost:
Learning Objectives
- Compute fixed overhead rates by employing standard costing methods.
- Calculate the attribution of overhead costs to products using customary costing practices.