A company uses a traditional costing overhead method with one rate for the company. They...
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Accounting
A company uses a traditional costing overhead method with one rate for the company. They apply overhead based on direct labor hours (DLH) and they have calculated their POHR to be $27 per DLH. Direct labor cost is $30 per hour. If product A uses 45 direct labor hours to produce one unit and Product B uses 20 direct labor hours to produce one unit how much overhead will be applied to each unit of Product A and how much overhead will be applied to each unit of Product B? *
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Overhead for Product A $1,350 and Product B $900
Overhead for Product A $1,215 and Product B $540
Overhead for Product A $810 and Product B $600
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