Using direct labor as the cost driver

Reference no: EM13305227

ABC Company's overhead amounts to $300,000 per period based on an output of 200 units of A, 300 units of B, and 500 units of C. Direct labor costs of A, B, and C per unit amount to $75, $50, and $40 respectively. Each unit also requires 7, 12, and 20 machine hours per unit of production respectively. Using direct labor as the cost driver,
a) total overhead chargeable to job/product A is what amount?
b) overhead chargeable per unit of C is what amount?
c) assuming that 40% of overhead relates to labor and 60% relates to machine hours, the overhead chargeable per unit of A is what amount?

Reference no: EM13305227

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