Assuming that estimated overhead costs are 3000 which are

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ProPats manufactures three souvenir products and has the following direct cost when three 1,000-unit batches (one for each product) are produced:

  • Hats Shirts Banners
  • Direct Materials $5,000 $5,000 $5,000
  • Direct Labor $1,000 $1,000 $1,000

Assuming that estimated overhead costs are $3000 which are allocated using a single rate based on direct labor cost and assuming that the estimated direct labor cost is $3000, determine the unit cost of the banner.

Reference no: EM13601156

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