Question - Cab Company manufactures two products, Product C and Product D. The company estimated it would incur $120,100 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours.
Data concerning the current period's operations appear below:
product c product d
Estimated volume 400 units 3,000 units
Direct labor hours per unit 1.20 hours 1.30 hours
Direct materials cost per unit 4$ 22.80$
Direct labor cost per unit 12$ 13$
Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year.