San Madeo Company had the following factory overhead costs:

The factory budgeted to work 20,000 direct labor hours in the upcoming period. San Madeo uses a single plantwide factory overhead rate based on direct labor hours. What is the overhead cost per unit associated with Product M, if Product M uses 6 direct labor hours per unit in the factory?

a. $34

b. $54

c. $204

d. $150

Transcribed Image Text:

Power Indirect labor Equipment depreciation $120,000 60,000 500,000