Question
Spates, Inc., manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct
Spates, Inc., manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production | Direct Labor-Hours Per Unit | Total Direct Labor-Hours | |
Product H2 | 130 | 6.3 | 819 |
Product E0 | 130 | 5.3 | 689 |
Total direct labor-hours | 1,508 | ||
The companys expected total manufacturing overhead is $267,968.
If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
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$203.83 per unit
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$151.57 per unit
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$355.40 per unit
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$1,119.51 per unit
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