Question
A company produces two types of tires. Type A105 produced 25000 tires Type B107 produced 6000 tires Average material cost : A105 is 45$ B107
A company produces two types of tires.
Type A105 produced 25000 tires
Type B107 produced 6000 tires
Average material cost :
A105 is 45$
B107 is 68$
Last Month:
A105 took 9000 Direct labor hours
B107 took 2000 Direct labor hours
Total conversion cost is 897,098,375
Total direct labor hours is 4690,200
Find :( using traditional cost allocation and absorption costing)
1)Total product cost
2) unit product cost
3) Cost per tire
Please provide answers with steps.
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