Question:

Using the Traditional Costing method and direct labor hours as the overhead driver, what would be the unit cost for Product B in January 20xx? Make sure you also include direct material and direct labor costs

BUDGETED (PROJECTED) FOR YEAR 20xx \begin{tabular}{lrrr} & \multicolumn{1}{r}{} & \multicolumn{1}{c}{ Product B } \\ Units To Be Produced for the Year & Product A & 95,000 & 135000 \\ D. L. Hours Projected for the Year & 90,000 & & 185,000 \\ Machine Hours for the Year & 126000 & 261,000 \\ Inspection Hours for the Year & 30,000 & 29,000 & 59,000 \\ Engineering Hours for the Year & - & 11,000 \\ Facility Use (Square Feet) for the Year & 500 & 500 \\ & 10,000.00 & 7,000.00 \end{tabular} Projected Budgeted Overhead for the Year Amount Use These Cost Pool Drivers for ABC Method MachineCostsInspectionCostEngineersFacility&GeneralTOTALBUDGETEDO.H.$$$$$1,200,000MachineHours500,000InspectionHours400,000EngineeringHours750,000SquareFootage2,850,000 ACTUAL RESULTS FOR THE MONTH OF JANUARY 20xx Units Actually Produced Actual D.L. Hours to Produce Actual D.L. Cost Actual D.M Cost Machine Hours for the Year Inspection Hours for the Year Engineering Hours for the Year Faciity Use (Square Feet) for the Year \begin{tabular}{rrrr} & \multicolumn{1}{c}{ Product B } & Totals \\ \hline & 7,560 & 8,000.00 & 15,560 \\ $11,000 & 11,250 & 22,250 \\ $165,000.00$ & 170,000.00 & 335,000 \\ & 210,345.00$ & 490,670.00 & 701,015 \\ 2,500 & 2,400 & 4,900 \\ 100 & 800 & 900 \\ 42.00 & 40.00 & 82 \\ 10,000.00 & 5,000.00 & 15,000 \end{tabular}