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

Question

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

Quizplus · Accepted Answer

The Answer of Canadian Doll Company had the following overhead costs and production for two months.The dolls are identical to each other.
 $\begin{array}{lrr}&\text { October } & \text { February }\
\text { Actual Overhead } & \$ 12,000 & \$ 12,000 \
\text { Number of Dolls } & 4,000 & 3,000
\end{array}$ A. What is the overhead cost per doll per 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