Avella, Inc., manufactures and sells two products: Product C2 and Product T1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company's expected total manufacturing overhead is $775,080. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product T1 would be closest to:
A)$426.12 per unit
B)$393.90 per unit
C)$291.00 per unit
D)$877.44 per unit

Question

Avella, Inc., manufactures and sells two products: Product C2 and Product T1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company's expected total manufacturing overhead is $775,080. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product T1 would be closest to:
A)$426.12 per unit 
B)$393.90 per unit 
C)$291.00 per unit 
D)$877.44 per unit

Quizplus · Accepted Answer

The Answer of Avella, Inc., manufactures and sells two products: Product C2 and Product T1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company's expected total manufacturing overhead is $775,080. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product T1 would be closest to:
A)$426.12 per unit 
B)$393.90 per unit 
C)$291.00 per unit 
D)$877.44 per unit