Need help with this question solution general accounting Sphere Company produces two products, Alpha and Beta. Alpha is a high-volume item totaling 20,000 units annually. Beta is a low-volume itemtotaling only 6,000 units per year. Alpha requires one hour of direct laborfor completion, while each unit of Beta requires 2 hours. Therefore, totalannual direct labor hours are 32,000 (20,000+12,000). Expected annualmanufacturing overhead costs are $640,000. Sphere uses a traditionalcosting system and assigns overhead based on direct labor hours. Each unitof Beta would be assigned an overhead ofA) $20.00.B) $24.61.C) $40.00.D) need more information to compute.

Step 1:To calculate Overhead cost assigned to each unit of Beta we need to calculate the…

Answered: Sphere Company produces two products,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter6: Activity-based, Variable, And Absorption Costing

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Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...

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