The unit product cost of Product J8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$752.61 per unit
B)$1,089.21 per unit
C)$1,301.97 per unit
D)$860.16 per unit

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $1,406,733 ÷ 20,100 DLHs = $69.99 per DLH (rounded)
Computation of traditional unit product cost: 11ea7998_5eaf_a2d4_911b_a92bc6700dae_TB2627_00_TB2627_00

The Unit Product Cost of Product J8 Under the Company's