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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 Product X Product Y Direct Material

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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 Product X Product Y Direct Material in Pounds 2.400 1.600 Direct labor hours 320 480 Machine Hours 720 280 Number of setups 54 96 Number of Units Produced 312 140 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 Cost Driver Overhead Cost Utilities # of machine hours $15.500 Setup # of setups $9.500 Material Handling # of pounds of material S25.000 Determine the unit cost for product Y

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