If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U1 would be closest to:

A) $261.40 per unit
B) $188.56 per unit
C) $213.28 per unit
D) $659.60 per unit

Question

Tiffany Wingert · Accepted Answer

Final Answer : D, Explanation :  Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours= $939,917 ÷ 5,700 DLHs = $164.90 per DLH (rounded)Product U1: 4.0 DLHs × $164.90 per DLH = $659.60

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U1 would be closest to:

A) $261.40 per unit
B) $188.56 per unit
C) $213.28 per unit
D) $659.60 per unit

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Learning Objectives

Related questions

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U1 would be closest to:A) $261.40 per unitB) $188.56 per unitC) $213.28 per unitD) $659.60 per unit

Definitions

Learning Objectives

Learning Objectives

Related questions

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U1 would be closest to:

A) $261.40 per unit
B) $188.56 per unit
C) $213.28 per unit
D) $659.60 per unit