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Bernard Company has been using direct labor costs as the basis tor assigning overhead to its many products. Under this allocation system, product A has
Bernard Company has been using direct labor costs as the basis tor assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $21.70 per unit, while product B has been assigned $10.44 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: The following cost information pertains to the production of A and B, just two of Bernard's many products: Using activity-based costing, determine the unit cost for product B. $8.18 per unit. $21.70 per unit. $3.76 per unit. $16.36 per unit. $10.96 per unit
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