Question
A factory produces every period 2,000 units of product A and 5,000 units of product B. Each unit of product A requires 3 direct labor
A factory produces every period 2,000 units of product A and 5,000 units of product B. Each unit of product A requires 3 direct labor hours and each unit of product B requires 2 labor hours. Total cost of overhead in the factory is $320,000. What would be the plant-wide overhead rate per labor hour?
$64,000
$20
$32
$45.71
A factory produces every period 2,000 units of product A and 5,000 units of product B. The inspection activity costs $72,000 per period. Product A uses 1,600 inspections hours (for all units of product A) and product B uses 3,200 inspection hours (for all units of product B). What is the activity rate for inspections?
$22.50 per inspection hour
$45 per inspection hour
$15 per inspection hour
$10.28 per inspection hour
A factory produces every period 2,000 units of product A and 5,000 units of product B. The inspection activity costs $72,000 per period. Product A uses 1,600 inspections hours (for all units of product A) and product B uses 3,200 inspection hours (for all units of product B). What is the cost of inspection allocated to each unit of product B?
$15
$9.60
$24
$13.75
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