Question: CA corp. has three different activities, setup, production, and testing to make two products, H and L, and. Following the ABC costing system, overhead costs

CA corp. has three different activities, setup, production, and testing to make two products, H and L, and. Following the ABC costing system, overhead costs are assigned for these two products as below.

H L
Setup 12250 5600
Production 78000 17550
Testing 21250 6250
total number of products 2000 500

If direct material cost per unit is $200 and direct labor cost per unit is $150 for making L product, what is the unit product cost for L product.

a. 408.8

b. 300.8

c. 420.75

d. 250.75

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!