Exercise $17-11($Algo$)$ Computing product cost per unit using plantwide method and actlvity$-$based

costling LO P$1,$ P$3$

Consider the following data for two products of Vigano Manufacturing.

Using a plantwide overhead rate based on $3\mathrm{.}500$ direct labor hours, compute the total product cost per unit for each product.

Consider the following additional information about these two products. If activity$-$based costing is used to allocate overhead cost.

$($a$)$ compute overhead activity rates, $($b$)$ allocate overhead cost to Product A and Product B and compute overhead cost per unit for

each, and $($c$)$ compute product cost per unit for each.

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Required $1$

Using a plantwide overhead rate based on $3,500$ direct labor hours, compute the total product cost per unit for each product.