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

Question

Keith Ferrante · Accepted Answer

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:

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

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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 unitB) $1,089.21 per unitC) $1,301.97 per unitD) $860.16 per unit

Definitions

Learning Objectives

Learning Objectives

Related questions

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