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Shed Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $28,000 $23,000 Direct labor 18,000 32,000 The
Shed Industries produces two products. The products' identified costs are as follows:
Product A | Product B | |
Direct materials | $28,000 | $23,000 |
Direct labor | 18,000 | 32,000 |
The company's overhead costs of $62,000 are allocated based on direct labor cost. Assume 12,000 units of product A and 13,000 units of Product B are produced. What is the cost per unit for product A? (Do not round your intermediate calculations, round final answer to two decimal places.)
$5.69
$9.28
$10.01
None of the above answers are correct.
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