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Shrajah Company makes two products, Standard and Unique. The Standard product line is a high-volume line, and the Unique line is a low-volume, specialized product.

Shrajah Company makes two products, Standard and Unique. The Standard product line is a high-volume line, and the Unique line is a low-volume, specialized product. In the past, Sharjah Company used machine hours to apply overhead to its products. Late last year, a POR was developed using the following data:

Budgeted annual overhead cost:: $ 2,000,000

Estimated machine hours 20,000 hours

The POR would be:

Other per unit costs for the two products are:

Standard Unique

Direct material $ 100 $ 200

Direct labor 20 30

Actual results for the month of January are:

Standard Unique

Actual production (units) 1,000 units 200 units

Actual machine hours 1,500 MH 500 MH

Using a single budgeted MOH rate to apply overhead

Compute total product cost and the cost per unit for each product in January using a single rate to allocate manufacturing overhead to the products.

Standard Unique

Total MOH Cost

Per Unit Cost

Direct materials

Direct labor .

Manufacturing overhead _____ _____

Unit Product Cost $ $

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