Question

PA5.

LO 6.3Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows:



It has also estimated the activities for each cost driver as follows:



How much is the overhead allocated to each unit of Generic and Label?

Answer 1

The allocated overhead per unit to Generic is $1.34 and to Label is $1.25 per unit.

Step-by-step explanation:

Please see attachment