Asume youre a product manager for a large profit-seeking

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Assume you're a product manager for a large, profit-seeking, manufacturing firm.  Specifically, you manage 'product #3'.  Information about the firm's product costs is provided below:

 

Product #1

Product #2

Product #3

Direct Materials

$140,000

$  70,000

$90,000

Direct Labor

$210,000

$130,000

$60,000

Overhead

?

?

?

The three products use 4,200; 3,250; and 3,000 direct labor hours (respectively). Overhead costs are determined based on a single cost driver.  Which of the following cost drivers would you select?

a. Direct Materials Dollars -

b. Direct Labor Dollars -

c. Total Direct Costs -

d. Direct Labor Hours -

e. Machine Hours -

Reference no: EM13389495

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