Engineering Products produces Product GH1, which incurs costs of \($150\) for direct materials and \($75\) for direct labour per unit. The company has estimated its production overhead and direct labour hours for a period as

Each unit of Product GH1 is produced using 10 hours in Dept. A, 12 hours in Dept. B, and 5 hours in Dept. C. Calculate the cost of one unit of GH1 using a company-wide overhead rate to the nearest dollar.

a. $300

b. $620

c. $866

d. $225

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Overhead Direct labour hours Dept. A $150,000 Dept. B 5,000 $200,000 10,000 Dept. C $125,000 5,000