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

question 26

Multiple Choice

Sheddon Industries produces two products.The products' identified costs are as follows: $\begin{array}{|l|c|l|}\hline & \text { Product A } & \text { Product B } \\\hline \text { Direct matenals } & \$ 20,000 & \$ 15,000 \\\hline \text { Direct labor } & 12,000 & 24,000 \\\hline\end{array}$ 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 your intermediate calculations. )

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

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Definitions:

CSR Campaign

Stands for Corporate Social Responsibility Campaign, which is an initiative by a business to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Reputational Objectives

Goals set by an organization to maintain or improve its standing and perception among stakeholders and the public.

Winston Churchill

A significant historical figure, best known as the Prime Minister of the United Kingdom during World War II known for his leadership qualities and stirring speeches.

Strategic Planning

The process of defining a direction for an organization by setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.