#3

A company has the following data for the year :

Estimated company overhead $ 500,000

Estimated direct labor dollars $1,000,000

Estimated machine hours $250,000

Actual factory overhead $550,000

Actual direct labor dollars $1,100,000

Actual machine hours $270,000

Product A takes 3 machines hours and $20 of direct labor dollars,

How much will the cost per unit of product X increase if the company changes from allocating overhead based on machines hours to direct labor hours?

$3,54

$3.89

$4,00

$4,40

$3.54