How much overhead cost per unit would be applied to product

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Reference no: EM131955949

Problem

Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 35,000 units next year and Product L is expected to sell 7,000 units. A unit of either product requires 0.7 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $2,499,000. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base.

If this method is followed, how much overhead cost per unit would be applied to each product?

Compute the total amount of overhead cost that would be applied to each product.

Reference no: EM131955949

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