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The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period. Product A 10,000 units Product
The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period. Product A 10,000 units Product B 3,200 units Number of units produced Direct labor @ $22 per direct labor hour (DLH) Direct materials cost 0.50 DLH per unit 2.00 DLH per unit $ 2.00 per unit $ 35.00 per unit 20 Overhead costs: Machine setup Quality inspections Total Activity Total Cost Driver Product A Product B $2,000.00 setups 5 setups 20 setups 36,000.00 inspections 60 inspections 240 inspections $38,000.00 Using activity-based costing to assign overhead costs, the total product cost per unit for Product A is: A) $15.20 per unit OB) $13.76 per unit C) $88.50 per unit OD) $14.00 per unit
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