Question
Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive.
Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive. During the period, the company produced 4,800 units of Product A requiring a total of 780 labor hours and 2,300 units of Product B requiring a total of 180 labor hours. What allocation rate should be used if the company incurs overhead costs of $17,280? Multiple Choice $18.00 per labor hour $2.43 per unit $22.15 per labor hour for Product A and $96 per labor hour for Product B None of these.
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