Given the data for two products being made at Putnam Manufacturing, determine:

Question

Quizplus · Accepted Answer

B) 1) Standard: $540
2) Deluxe: $842
 $$\begin{array}{l}
\begin{array} { |l | l | l| } 
\hline&\text { Standard}&\text {Deluxe }\
\hline\text {\# of units produced/ year }&500,000&40,000\
\hline\text {Labor cost/ unit }&\$100&\$180\
\hline\text { Total labor cost } & 100 \times 500,000=\$ 50 \mathrm{M} & 180 \times 40,000=\$ 7.2M\
\hline\text { Allocated overhead \$ / \$of labor  }&108.68 /(50+7.2) =1.90\
\hline\text {Allocation of overhead of each product }&1.90 \times 50 M= \$95M&1.90\times180=\$13.68M\
\hline\text {Overhead expenses per unit }&1.90\times100=\$190&\$320+180+342=\$842\
\hline\text {Total unit cost }&\$250+100+190=\$540&\$320+480+342=\$842\ \hline
\end{array}
\end{array}$$

Given the Data for Two Products Being Made at Putnam