Pink Ink, Inc. has two products and two overhead cost pools:

Required:
A) Using direct labor hours as the allocation base, what is the overhead rate for Materials Handling overhead?
B) What is the total cost to make each unit of Product B, if all overhead is allocated based on units produced?
C) How much Everything Else overhead would be applied to each unit of product A, if this cost pool is allocated to product using direct materials dollars as the allocation base?

Transcribed Image Text:

Units produced Product A Product B In Total 200 50 Direct Costs (per unit): Materials $10 $20 Labor (paid $20 per hour) $20 $40 Materials Handling cost pool $21,000 Everything Else cost pool $76,000