Question
Margot manufactures and sells two products: Product R6 and Product V2. Data concerning the expected production of each product and the expected total direct labor-hours
Margot manufactures and sells two products: Product R6 and Product V2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The expected Production for R6 was 400, and direct labor hours per unit was 5 totaling 2,000 and for V2 the expected production was 800 and direct labor hours per unit was 6 totaling 4,800.
The direct labor rate is $16.10 per DLH. The direct materials cost per unit is $256.40 for Product R6 and $125.00 for Product V2. The estimated total manufacturing overhead is $441,772.
What would be the unit product cost of Product V2 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours.
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