Kirsten belleves her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor Intensive. During the period, the company produced 4,700 units of Product A requiring a total of 770 labor hours and 2,200 units of Product B requiring a total of 170 labor hours. What allocation rate should be used if the company Incurs overhead costs of $15.980? Multiple Choice $17.00 per labor hour $2.32 per unit $20.75 per labor hour for Product A and $94 per labor hour for Product B None of these

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor Intensive. During the period, the company produced 4,700 units of Product A requiring a total of 770 labor hours and
2,200 units of Product B requiring a total of 170 labor hours. What allocation rate should be used if the company Incurs overhead costs of $15,980?
Multiple Choice
$17.00 per labor hour
$2.32 per unit
$20.75 per labor hour for Product A and $94 per labor hour for Product B
None of these.
Transcribed Image Text:Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor Intensive. During the period, the company produced 4,700 units of Product A requiring a total of 770 labor hours and 2,200 units of Product B requiring a total of 170 labor hours. What allocation rate should be used if the company Incurs overhead costs of $15,980? Multiple Choice $17.00 per labor hour $2.32 per unit $20.75 per labor hour for Product A and $94 per labor hour for Product B None of these.
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