Question
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 34,000 units next year and Product L
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 34,000 units next year and Product L is expected to sell 6,800 units. A unit of either product requires 0.8 direct labor-hours. |
The company's total manufacturing overhead for the year is expected to be $2,774,400. |
Required: | ||||||||
1-a. | The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product?
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