Question
Colonels uses a traditional cost system and estimates next year's overhead will be $729,000, with the estimated cost driver of 243,000 direct labor hours. It
Colonels uses a traditional cost system and estimates next year's overhead will be $729,000, with the estimated cost driver of 243,000 direct labor hours. It manufactures three products and estimates the following costs:
| Small | Medium | Large | |
| Units | 32,000 | 13,000 | 2,000 |
| Direct Material Cost | $4 | $8 | $9 |
| Direct Labor Hours per Unit | 5 | 5 | 9 |
If the labor rate is $25 per hour, what is the per-unit cost of each product?
| Small | Medium | Large | |
| Cost per unit | ? | ? | ? |
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Evidence Based Audit In General Practice
Authors: Richard Baker, Robin C. Fraser MD FRCGP, Mayur Lakhani MRCP MRCGP DCH
1st Edition
075063104X, 978-0750631044
