Suppose that you are given the following information. Total overhead is $$60,000.$

Of this, $$40,000$ is "machining," $$10,000$ is

assembly." The machining cost pool is best driven by machine hours, the labor assembly is best driven by direct labor dollars, and the capital assembly is best driven by batches. The factory produces $10,000$ units of Product A and Product B apiece.

Each unit of Product A requires $$7$ of direct materials, $$4$ of direct labor, $1$ machine hour, and $1/5$ batches. Each unit of Product B requires $$7$ of direct materials, $$8$ of direct labor, $3$ machine hour, and $4/5$ batches.

What is the per unit cost of producing Product A and Product B$?$

Answer rating: 100% (QA)

To determine the per unit cost of producing Product A and Product B we need to calculate the total c... View the full answer