Asked by
Megan Ghelfi
on Oct 11, 2024
Verified
The unit product cost of Product I4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A) $421.06 per unit
B) $336.22 per unit
C) $558.70 per unit
D) $509.17 per unit
Traditional Costing Method
A costing methodology that allocates overhead costs based on a single, volume-based cost driver, such as labor hours or machine hours.
Direct Labor-Hours
The total time workers spend on producing a product, directly correlating to the product itself.
Unit Product Cost
An expression of the total production cost (materials, labor, and overhead) divided by the number of units produced.
- Absorb the fundamentals of overhead allocation by employing conventional costing systems.
- Determine the unit costs by applying overhead proportional to direct labor hours in the context of traditional costing methods.
Verified Answer
DS
Learning Objectives
- Absorb the fundamentals of overhead allocation by employing conventional costing systems.
- Determine the unit costs by applying overhead proportional to direct labor hours in the context of traditional costing methods.