Smith's Company manufactures tennis rackets and badminton rackets. Overhead costs are currently allocated using direct labor hours. Tennis RacketsBadminton Rackets TotalDirect labor hours (unit)30,00070,000100,000No. of Units Shipped40,00035,00075,000 Total Overhead Cost$280,000 What is the unit OH cost for badminton rackets if the total OH cost is allocated based on labor hours? a. $4.80 b. $5.60 c. $4.00 d. $5.20

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter5: Process Costing
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Smith's Company manufactures tennis rackets and badminton
rackets. Overhead costs are currently allocated using direct labor
hours.
Tennis RacketsBadminton Rackets TotalDirect labor hours
(unit)30,00070,000100,000No. of Units
Shipped40,00035,00075,000 Total Overhead Cost$280,000
What is the unit OH cost for badminton rackets if the total OH cost
is allocated based on labor hours?
a. $4.80
b. $5.60
c. $4.00
d. $5.20
Transcribed Image Text:Smith's Company manufactures tennis rackets and badminton rackets. Overhead costs are currently allocated using direct labor hours. Tennis RacketsBadminton Rackets TotalDirect labor hours (unit)30,00070,000100,000No. of Units Shipped40,00035,00075,000 Total Overhead Cost$280,000 What is the unit OH cost for badminton rackets if the total OH cost is allocated based on labor hours? a. $4.80 b. $5.60 c. $4.00 d. $5.20
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