Question
The Harrington Company has two products: A and B. The annual production and sales of Product A are 1750 units and those of Product B
The Harrington Company has two products: A and B. The annual production and sales of Product A are 1750 units and those of Product B are 1150 units. The company has traditionally used direct labor hours as the basis for allocating all manufacturing overhead to products.
Product A requires 0.4 direct labor hours per unit and Product B requires 0.7 direct labor hours per unit.
The default overhead rate is $66.00 per direct labor hour.
What is the amount of overhead that will be allocated to each unit of Product B?
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
