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The companys overhead costs of 57000 are allocated based on

Problem

Shed Industries produces two products. The products' identified costs are as follows:

                              Product A        Product B
Direct materials         $23,000          $18,000
Direct labor               11,000            27,000

The company's overhead costs of $57,000 are allocated based on labor cost. Assume 7,000 units of product A and 8,000 units of Product B are produced. What amount of production costs would be assigned to Product B?

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Accounting Basics: The companys overhead costs of 57000 are allocated based on

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