A company uses a traditional costing overhead method with one rate for the company. They...

50.1K

Verified Solution

Question

Accounting

A company uses a traditional costing overhead method with one rate for the company. They apply overhead based on direct labor hours (DLH) and they have calculated their POHR to be $27 per DLH. Direct labor cost is $30 per hour. If product A uses 45 direct labor hours to produce one unit and Product B uses 20 direct labor hours to produce one unit how much overhead will be applied to each unit of Product A and how much overhead will be applied to each unit of Product B? *

1 point

Overhead for Product A $1,350 and Product B $900

Overhead for Product A $1,215 and Product B $540

Overhead for Product A $810 and Product B $600

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students