Question
Shed Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $27,000 $22,000 Direct labor 19,000 31,000 The
Shed Industries produces two products. The products' identified costs are as follows:
|
| Product A | Product B |
| Direct materials | $27,000 | $22,000 |
| Direct labor | 19,000 | 31,000 |
The company's overhead costs of $150,000 are allocated based on direct labor cost. Assume 11,000 units of product A and 10,000 units of Product B are produced. What is the cost per unit for product B?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
a. $14.60
b. $5.30
c. $15.00
d. None of these answers is correct.
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The Basics Of IT Audit Purposes Processes And Practical Information
Authors: Stephen D. Gantz
1st Edition
0124171591, 978-0124171596
