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Q2) Gotham Inc. has a total of $50,000 in production overhead costs. The company's products and related statistics follow. Direct Material in Pounds Direct labor
Q2) Gotham Inc. has a total of $50,000 in production overhead costs. The company's products and related statistics follow. Direct Material in Pounds Direct labor hours Machine Hours Number of setups Number of Units Produced Product X 2.400 320 720 54 312 Product Y 1,600 480 280 96 140 Additional data: The direct material was purchased for $8,000. One direct labor hour costs $20. 2A) Assume that Gotham uses direct labor hours to apply the overhead costs to the products. Determine the unit cost for product X? 2B) Assume that Gotham uses the following activity centers, cost drivers, and costs to apply overhead to products. Cost Pool Utilities Setup Material Handling Cost Driver # of machine hours # of setups # of pounds of material Overhead Cost $15,500 $9,500 $25,000 Determine the unit cost for product Y
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