Cassano,Inc. ,manufactures and sells two products: Product C8 and Product E6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $19.80 per DLH.The direct materials cost per unit is $145.10 for Product C8 and $181.00 for Product E6.The estimated total manufacturing overhead is $671,598. The unit product cost of Product C8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$658.94 per unit
B)$470.00 per unit
C)$666.56 per unit
D)$348.74 per unit

Question

Cassano,Inc. ,manufactures and sells two products: Product C8 and Product E6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $19.80 per DLH.The direct materials cost per unit is $145.10 for Product C8 and $181.00 for Product E6.The estimated total manufacturing overhead is $671,598. The unit product cost of Product C8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$658.94 per unit 
B)$470.00 per unit 
C)$666.56 per unit 
D)$348.74 per unit

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $671,598 ÷ 10,200 DLHs = $65.84 per DLH (rounded)
Computation of traditional unit product cost:
 11eaa3fe_334d_8389_908b_4f64cb8af644_TB2461_00