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
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