Flyer Corporation manufactures two products, Product A and Product B. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for each unit of Product A.

Overhead is currently assigned to the products on the basis of direct labor hours. The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,600 units of Product B and 22,000 units of Product A during the current year (for a total estimated direct labor hours of 49,800). Costs for materials and direct labor per unit of product are:

Product A Product B

Direct Material $9 $20

Direct Labor $7 $15

What would be the Predetermined Overhead Rate per DLH using Traditional Costing? (you can round to the nearest cent)

Answer Here

Using Traditional Costing, what amount of overhead would be applied to each unit of Product A?

Answer Here