Question: Doug Brown's Corporation manufactures soccer balls and basketballs. Overhead costs are currently allocated using direct labor hours.
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Soccer
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Basketballs
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Total
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Direct labor hours (unit)
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25,000
|
100,000
|
125,000
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|
#Units Shipped
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60,000
|
50,000
|
110,000
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|
Total Overhead Cost
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$315,000
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|
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Required: What is the unit OH cost for basketballs if the total OH cost is allocated based on labor hours?
a. $6.10
b. $1.63
c. $5.04
d. $6.30
e. $5.54