Sheddon Industries Produces Two Products The Company's Overhead Costs of $57,000 Are Allocated Based on as Follows

question 183

Multiple Choice

Sheddon Industries produces two products. The products' identified costs are as follows: $$\begin{array} { l c c } & \text {Product A } & \text { Product B} \\\text { Direct materials } & \$ 23,000 & \$ 19,000 \\\text { Direct labor } & \$ 11,000 & 27,000\end{array}$$ The company's overhead costs of $57,000 are allocated based on direct labor cost. Assume 7,000 units of product A and 8,000 units of Product B are produced. What is the cost per unit for product B? (Do not round intermediate calculations.)

• A) $12.69
• B) $10.69
• C) $11.06
• D) None of the answers are correct.

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