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Spates, Inc., manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product H2 300 8.0 2,400
Product E0 300 7.0 2,100
Total direct labor-hours 4,500
The company's expected total manufacturing overhead is $276,468.
Problem 1: If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
a. $68.67 per unitb. $54.21 per unitc. $122.88 per unitd. $491.52 per unit
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