Question

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U4 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

$178.56 per unit

Step-by-step explanation:

Note: The full question is attached and can be seen below

Total overhead cost = $214,270

Total labor hours = 2400

Allocated overhead per hour based on direct labor-hours = $214,270/2400 hours = $89.28

Hours required for one unit of product U4 = 2 hours

Overhead assigned to each unit of Product U4 will be = 2 hours * $89.28 = $178.56 per unit