.If total overhead is assigned to A and B on the basis of direct labor hours, Product A will have an overhead cost per unit of? 2.  Product B will have an overhead cost per unit of?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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.Zilong Company produces two products (A and B). Direct material and labor costs for Product A total P35 (which reflects 4 direct labor hours); direct material and labor costs for Product B total P22 (which reflects 1.5 direct labor hours). Three overhead functions are needed for each product. Product A uses 2 hours of Function 1 at P10 per hour, 1 hour of Function 2 at P7 per hour, and 6 hours of Function 3 at P18 per hour. Product B uses 1, 8, and 1 hours of Functions 1, 2, and 3, respectively. Zilong produces 800 units of A and 8,000 units of B each period.If total overhead is assigned to A and B on the basis of direct labor hours, Product A will have an overhead cost per unit of?

2.  Product B will have an overhead cost per unit of?

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