Old Lace (OL) is a well-established manufacturing company that produces vintage furniture. OL has used direct labor hours as the basis for allocating company-wide overhead for many years. However, given recent investments in manufacturing technologies, management feels that ABC costing would perhaps provide a more accurate assessment of the true price of the goods produced.
The following costs have been accumulated and corresponding drivers measured:
Additionally, the following information is available relative to production levels:
What would be the per-unit overhead allocated to a chair produced by OL this period? What about a table? (Note: do not round intermediate calculations, round per-unit costs to the nearest cent.)

Question

Old Lace (OL) is a well-established manufacturing company that produces vintage furniture. OL has used direct labor hours as the basis for allocating company-wide overhead for many years. However, given recent investments in manufacturing technologies, management feels that ABC costing would perhaps provide a more accurate assessment of the true price of the goods produced. 
The following costs have been accumulated and corresponding drivers measured:
  Additionally, the following information is available relative to production levels:
  What would be the per-unit overhead allocated to a chair produced by OL this period? What about a table? (Note: do not round intermediate calculations, round per-unit costs to the nearest cent.)

Quizplus · Accepted Answer

The Answer of Old Lace (OL) is a well-established manufacturing company that produces vintage furniture. OL has used direct labor hours as the basis for allocating company-wide overhead for many years. However, given recent investments in manufacturing technologies, management feels that ABC costing would perhaps provide a more accurate assessment of the true price of the goods produced. 
The following costs have been accumulated and corresponding drivers measured:
  Additionally, the following information is available relative to production levels:
  What would be the per-unit overhead allocated to a chair produced by OL this period? What about a table? (Note: do not round intermediate calculations, round per-unit costs to the nearest cent.)

Old Lace (OL) Is a Well-Established Manufacturing Company That Produces