Alpha company allocates fixed overhead costs based on


Question - Alpha Company allocates fixed overhead costs based on direct labor dollars, with an allocation rate of $5 per DL$. Alpha sells 1,000 units of product X per month at a price of $40 per unit. The variable costs are direct materials $10/unit, direct labor $4/units, and variable overhead $2/unit. Compute the profit margin per unit of product X.

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