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How much overhead will be applied to each unit of Product A

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Reference no: EM133067827

Question - A company uses a traditional costing overhead method with one rate for the company. They apply overhead based on direct labor hours (DLH) and they have calculated their POHR to be $27 per DLH. Direct labor cost is $30 per hour. If product A uses 45 direct labor hours to produce one unit and Product B uses 20 direct labor hours to produce one unit how much overhead will be applied to each unit of Product A and how much overhead will be applied to each unit of Product B?

Overhead for Product A $1,350 and Product B $900

Overhead for Product A $1,215 and Product B $540

Overhead for Product A $810 and Product B $600

Reference no: EM133067827

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