Sheddon Industries Produces Two Products The Company's Overhead Costs of $108,000 Are Allocated Based on as Follows

question 81

Multiple Choice

Sheddon Industries produces two products. The products' identified costs are as follows: $$\begin{array} { l c c } & \text { Product A } & \text { Product B } \\\text { Direct materials } & \$ 20,000 & \$ 15,000 \\\text { Direct labor } & \$ 12,000 & 24,000\end{array}$$ The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round intermediate calculations.)

• A) $7.80
• B) $22.20
• C) $16.80
• D) None of the answers are correct.