Question

3) Fede company produces two products. The products' estimated costs are as follows: Product S Product K Direct materials $ 20,000 $ 15,000 Direct labor 12,000 24,000 The company's overhead costs of $108,000 are allocated based on labor cost. Assume 4,000 units of product S and 5,000 units of Product K are produced. What is the total amount of production costs that would be assigned to Product S

Answer 1

$68,000

Step-by-step explanation:

Calculation to determine What is the total amount of production costs that would be assigned to Product S

Direct materials $ 20,000

Add Direct labor $12,000

Add Dividend $36,000

($108,000*$12,000/$12,000+$24,000)

Total amount of production costs $68,000

($20,000+$12,000+$36,000)

Therefore the total amount of production costs that would be assigned to Product S is $68,000