Knowledge Check 01

Harrington Company has two products: A and B. The annual production and sales of Product A is 1,750 units and of Product B is 1,150 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.7 direct labor-hours per unit. The predetermined overhead rate is $66.00 per direct labor-hour.

What it the amount of overhead cost that will be allocated to each unit of Product B? (Round your answer to 2 decimal places.)

2.

Activities	Activity Rates
Assembly	$	14.35		per machine-hour
Processing Orders	$	47.85		per order
inspection	$	70.30		per inspection-hour

True Blue Corporation provided the data set forth above from its activity-based costing system. The company makes 430 units of product D28K a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.82 per unit and its direct labor cost is $29.56 per unit. What is the unit product cost of product D28K? (Round your answer to 2 decimal places.)