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Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $ 29,000 $ 24,000 Direct labor 21,000
Sheddon Industries produces two products. The products' identified costs are as follows:
Product A | Product B | |||||
Direct materials | $ | 29,000 | $ | 24,000 | ||
Direct labor | 21,000 | 33,000 | ||||
The company's overhead costs of $63,000 are allocated based on direct labor cost. Assume 13,000 units of product A and 14,000 units of Product B are produced. What is the cost per unit for product B? (Do not round intermediate calculations.)
A. $8.82
B. $6.82
C. $10.07
D. None of the answers are correct.
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