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Total direct labour cost is 12*10000 = $ 12,000 Overhead rate is = Total Overhead/Total direct labour hrs Total overhead is $ 215,000 Total direct
Total direct labour cost is 12*10000 = $ 12,000
Overhead rate is = Total Overhead/Total direct labour hrs
Total overhead is $ 215,000
Total direct labour hours is 1,000
Overhead rate is = 215000/1000
That is = $ 215 per hour
Touch labor (i.e. direct labor) earns (their take home) is $12/hour. What is the total direct labor cost per unit to the company given the information below: For the same product, calculate the overhead rate/unit assuming overhead is allocated based on direct labor hours. The current projections show $215,000 of overhead will be required. Calculate the overhead rate/unit, for Product A and B. assuming the ABC method using the information provided below. What is your recommendation about these products using the ABC methodology? Will it be worthwhile for the company to change to the ABC methodology? Why or why not? Your recommendation must be supported by data and should address all components of cost and a comparison to the traditional costing information. Discontinuing a product is not an option. Include any assumptions you makeStep by Step Solution
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