Doug Brown's Corporation manufactures soccer balls and basketballs. Overhead costs are currently allocated using direct labor hours. Soccer Basketballs Total Direct labor hours (unit) 25,000 100,000 125,000 No. of Units Shipped 60,000 50,000 110,000 Total Overhead Cost $315,000 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
Doug Brown's Corporation manufactures soccer balls and basketballs. Overhead costs are currently allocated using direct labor hours. Soccer Basketballs Total Direct labor hours (unit) 25,000 100,000 125,000 No. of Units Shipped 60,000 50,000 110,000 Total Overhead Cost $315,000 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
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Transcribed Image Text:Doug Brown's Corporation manufactures soccer balls and basketballs. Overhead
costs are currently allocated using direct labor hours.
Soccer
Basketballs Total
Direct labor hours (unit) 25,000
100,000 125,000
No. of Units Shipped
60,000
50,000
110,000
Total Overhead Cost
$315,000
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
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