EMD Corporation manufactures two products,Product S and Product W.Product W is of fairly recent origin,having been developed as an attempt to enter a market closely related to that of Product W.Product W is the more complex of the two products,requiring one hour of direct labour time per unit to manufacture compared to one-half hour of direct labour time for Product S.Product W is produced on an automated production line.
Overhead is currently assigned to the products on the basis of direct labour-hours.The company estimated it would incur a total of $500,000 in manufacturing overhead costs and produce 10,000 units of Product W and 60,000 units of Product S during the current year.Unit cost for materials and direct labour are:

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The Answer of EMD Corporation manufactures two products,Product S and Product W.Product W is of fairly recent origin,having been developed as an attempt to enter a market closely related to that of Product W.Product W is the more complex of the two products,requiring one hour of direct labour time per unit to manufacture compared to one-half hour of direct labour time for Product S.Product W is produced on an automated production line.
Overhead is currently assigned to the products on the basis of direct labour-hours.The company estimated it would incur a total of $500,000 in manufacturing overhead costs and produce 10,000 units of Product W and 60,000 units of Product S during the current year.Unit cost for materials and direct labour are:

EMD Corporation Manufactures Two Products,Product S and Product W