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

question 74

Multiple Choice

Sheddon Industries produces two products.The products' identified costs are as follows: $\begin{array}{lrr}&\text { Product A }&\text { Product B }\\ \text { Direct materials} &\$20,000&\$15,000\\ \text { Direct labor} &12,000&24,000\\\end{array}$
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.

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Definitions:

Employee

An employee is an individual who has entered into or works under the terms of a contract of employment, whether implied or explicit, providing work or services in exchange for compensation.

Collective Agreement

A contract in written form agreed upon between a union that represents workers and an employer, detailing the conditions of employment.

Minimum Period

The shortest legally or contractually allowable duration for a particular action, employment, or agreement.

Unfair Labour Practice

Actions by employers or unions that violate employees' rights and labor laws, often related to collective bargaining or workplace discrimination.