Reference no: EM132524301

Direct Apex Corporation manufactures two products, Product DAC and Product DIB. Product DIB requires two hours of direct labour time per unit to manufacture compared to one hour of direct labour time for Product DAC.

Overhead is currently assigned to the products on the basis of direct-labour-hours. The company estimated it would incur $450,000 in manufacturing overhead costs and produce 30,000 units of Product DAC and 7,500 units of Product DIB during the current year.

Unit costs for materials and direct labour are:

                       Product DAC              Product DIB

Direct material     $24                          $35

Direct labour          $10                      $20

Question 1: If the company allocates all of its overhead based on direct labour-hours, the unit product cost of Product DAC would be closest to: