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 units produced, Product A will have an overhead cost per unit of? 2. Product B will have an overhead cost per unit of?
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 units produced, Product A will have an overhead cost per unit of? 2. Product B will have an overhead cost per unit of?
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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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 units produced, 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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