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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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