Colonels uses a traditional cost system and estimates next year's overhead will be $792,000, with...
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Accounting
Colonels uses a traditional cost system and estimates next year's overhead will be $792,000, with the estimated cost driver of 264,000 direct labor hours. It manufactures three products and estimates the following costs:
| Small | Medium | Large | |
| Units | 34,000 | 12,000 | 4,000 |
| Direct Material Cost | $4 | $8 | $9 |
| Direct Labor Hours per Unit | 4 | 7 | 11 |
If the labor rate is $25 per hour, what is the per-unit cost of each product?
| Small | Medium | Large | |
| Cost per unit | $ | $ | $ |
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