What is the per unit cost for each product using traditional

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Reference no: EM133348449

Question:

Hometown Solar makes 2 sizes of solar lights; small and large.

They expect to make 70,000 units of the small light, with direct material costs of $10 per unit, and direct labor costs of $60 per unit

They expect to make 30,000 units of the large light, with direct material costs of $15 per unit, and direct labor costs of $40 per unit

Hometown Solar uses traditional overhead allocation at an applied rate of $21 per machine hour

The following additional information is available:

Machine setups: 90000

Machine processing: 4000000

Total Overhead: 4090000

Number of requisitions: 100000

Small, large, total:

Machine setups 100, 200, 300

Machine hours 140000, 60000, 200000

Parts requisitions 80, 120, 200

What is the per unit cost for each product using traditional allocation?

Reference no: EM133348449

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