Odyssey Inc. has a total of $ 2,362,500 in production overhead costs. The company€™s products and related statistics follow.

Additional data: The 330,000 pounds of material were purchased for $ 544,500. One direct labor hour costs $ 12.
a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit.
b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit.
c. Assume that Odyssey Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products:

Determine the total cost for each product and the cost perunit.

Transcribed Image Text:

Product A 139,500 30,000 52,500 Product B Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced 190,500 37,500 22,500 860 7,500 430 15,000 Cost Pool Utilities Setup Material handling Cost Driver # of machine hours # of setups #0f pounds of material Cost 750,000 193,500 1,419,000