Using a plantwide overhead rate based on direct labor hours, compute the total product cost per unit for each product.
Consider the following additional information about these two products. If activitybased costing is used to allocate overhead cost, a compute overhead activity rates, b allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and c compute product cost per unit for each.
tableActual Activity Usage,Product AProduct BSetups setups, setupsParts parts, partsInspections inspections, inspections
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Using a plantwide overhead rate based on direct labor hours, compute the total product cost per unit for each product.
tablePer Unit,tableDirectMaterialsDirect Lobor,Overhead,tableProduct Costper UnitProduct AProduct B
