What is cost per unit for product a

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Shed Industries produces two products. The products' identified costs are as follows:

                         Product A            Product B
Direct Materials       $20,000               $15,000
Direct Labor Cost         $12,000               $24,000

Problem 1: The company's overhead costs of $54,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product A?

Option 1: $12.50
Option 2: $17.00
Option 3: $14.75
Option 4: None of these

 

Reference no: EM132950337

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