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:

Clinical Psychology

Clinical psychology is a branch of psychology focused on diagnosing and treating mental, emotional, and behavioral disorders through various therapeutic techniques.

Empirical

Based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

Direct Observations

The method of gathering data through firsthand witnessing or measurement of behaviors, events, or situations without depending on secondary data.

Psychologists

Professionals who study and treat mental processes and behaviors in individuals and groups.