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Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two
Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:
Setting up equipment | $3,000 |
Machining | $15,000 |
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
Excellent Laptops | Outstanding Computers | |
Direct Labor | $25,000 | $10,000 |
Direct Materials | $20,000 | $5,000 |
Expected Production in Units | 3,000 | 3,000 |
Machine Hours | 850 | 2,000 |
Setup Hours | 80 | 75 |
Calculate the overhead cost per unit for Excellent Laptops using a plantwide rate based on direct labor costs. (Note: Round answer to two decimal places.)
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