Look Up!, Inc. manufactures and distributes three types of hot air balloons. The company currently uses a plantwide overhead allocation method based on direct labor hours. This rate amounts to $200 per direct labor hour. Estimated per unit product costs and related information for the next year are shown below.

If Look Up! changes the plantwide overhead allocation base to machine hours, what is the total product cost per deluxe unit?

Question

Look Up!, Inc. manufactures and distributes three types of hot air balloons. The company currently uses a plantwide overhead allocation method based on direct labor hours. This rate amounts to $200 per direct labor hour. Estimated per unit product costs and related information for the next year are shown below.

If Look Up! changes the plantwide overhead allocation base to machine hours, what is the total product cost per deluxe unit?

Quizplus · Accepted Answer

The Answer of Look Up!, Inc. manufactures and distributes three types of hot air balloons. The company currently uses a plantwide overhead allocation method based on direct labor hours. This rate amounts to $200 per direct labor hour. Estimated per unit product costs and related information for the next year are shown below.

If Look Up! changes the plantwide overhead allocation base to machine hours, what is the total product cost per deluxe unit?