Uses a plant-wide rate based on direct labor hours

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Reference no: EM131219343

Ralph Co. uses a plant-wide rate based on direct labor hours to assign its overhead costs. The estimated overhead costs are $400,000. There are two major categories of overhead: material handling and quality control. The estimated direct labor hours are 50,000 per year. There were 7,000 units of Product A produced and sold. Product A used 3,000 direct labor hours, $20,000 direct labor, and $40,000 direct materials.

The product cost for Product A is $___________ per unit.

Reference no: EM131219343

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