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The monthly indirect production cost is Depreciation Expense on Assembly Equipment of $100,000. The cost allocation base is number of machine hours. The expected level
The monthly indirect production cost is Depreciation Expense on Assembly Equipment of $100,000. The cost allocation base is number of machine hours. The expected level of production in a month is 10,000 machine hours. What is the amount of indirect production cost per unit assigned to Product 1 and Product 2. Product 1 requires 10 machine hours per unit. Product 2 requires 20 machine hours per unit.
A. | Product 1: $1, and Product 2: $2 | |
B. | Product 1: $10, and Product 2: $20 | |
C. | Product 1: $100, and Product 2: $200 | |
D. | None of the above |
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