A company produces two types of tires.
Type A105 produced 25000 tires
Type B107 produced 6000 tires

Average material cost :
A105 is 45$
B107 is 68$

Last Month:
A105 took 9000 Direct labor hours
B107 took 2000 Direct labor hours

Total conversion cost is 897,098,375
Total direct labor hours is 4690,200

Find :( using traditional cost allocation and absorption costing)

1)Total product cost
2) unit product cost
3) Cost per tire

Please provide answers with steps.

Answer rating: 100% (QA)

Note Conversion cost is allocated on direct labor hour basis ... View the full answer