Canadian Doll Company had the following overhead costs and production for two months. The dolls are identical to each other. $\begin{array}{ccc}&\text { October }&\text { February }\
\text { Actual Overhead } & \$ 12,000 & \$ 12,000 \
\text { Number of Dolls } & 4,000 & 3,000
\end{array}$ A. Calculate the overhead cost per doll for each month.
B. What type of costing is being used here, and what is the problem with this type that is presented here?

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The Answer of Canadian Doll Company had the following overhead costs and production for two months. The dolls are identical to each other. $\begin{array}{ccc}&\text { October }&\text { February }\
\text { Actual Overhead } & \$ 12,000 & \$ 12,000 \
\text { Number of Dolls } & 4,000 & 3,000
\end{array}$ A. Calculate the overhead cost per doll for each month.
B. What type of costing is being used here, and what is the problem with this type that is presented here?

Canadian Doll Company Had the Following Overhead Costs and Production