A company manufactures two products, X and Y. The following data is available:ProductDirect MaterialsDirect LaborOverhead...
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Accounting
A company manufactures two products, X and Y. The following data is available:
Product
Direct Materials
Direct Labor
Overhead (allocated)
X
$15,000
$10,000
$5,000
Y
$20,000
$12,000
$6,000
Requirements:
(a) Calculate the total cost for each product. (b) Determine the cost per unit if 1,000 units of X and 1,500 units of Y are produced. (c) Compute the overhead allocation rate. (d) Discuss the importance of accurate overhead allocation in cost accounting.
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