Spates, Inc, manufactures and sells two products: Product H2 and Product EO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Total Direct Direct Labor-Hours Expected Production Labor Hours Per Unit Product H2 250 7.5 1,875 Product Ee 250 6.5 1,625 3,500 Total direct labor-hours
Spates, Inc, manufactures and sells two products: Product H2 and Product EO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Total Direct Direct Labor-Hours Expected Production Labor Hours Per Unit Product H2 250 7.5 1,875 Product Ee 250 6.5 1,625 3,500 Total direct labor-hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Spates, Inc., manufactures and sells two products: Product H2 and Product EO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that
output appear below:
Total
Direct
Direct
Labor-Hours
points
Expected
Labor-
Per Unit
Production
Hours
Product H2
250
7.5
1,875
Product E0
250
6.5
1,625
Total direct labor-hours
3,500
The company's expected total manufacturing overhead is $273,968.
If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$88.07 per unit
$68.49 per unit
$156.56 per unit
$58710 per unit
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