Overhead Labor Cost/Units Produced
Company A produces two products. The products' identified costs and production information are as foolows:
Product A Product B
Direct Material $18,000 $12,000
Direct labor 6,000 12,000
Units produced 4,000 5,000
Overhead is $54,000
Assuming the company allocates overhead on the basis of labor cost, compute the overhaed and total production cost for both products.
Assuming the company allocates overhead on the basis of units produced, compute the overhead and total production cost for both products.