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 appears below: Expected Direct Labor Total Direct Production Hours Per Unit Labor Hours Product H2 130 6.3 819 Product EO 130 5.3 689 Total direct 1,508 labor hours The company's expected total manufacturing overhead is $267,968. If the company allocates all of its overhead based on direct labor hours, the overhead assigned to each unit of Product H2 would be: A. $203.83 per unit B. $151.57 per unit C. $355.40 per unit D. $1,119.51 per unit

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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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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 appears below:
Expected
Direct
Labor Total
Direct
Production
Hours Per Unit
Labor Hours
Product H2
130
6.3
819
Product EO
130
5.3
689
Total
direct
1,508
labor hours
The company's expected total manufacturing overhead is $267,968.
If the company allocates all of its overhead based on direct labor hours,
the overhead assigned to each unit of Product H2 would be:
A. $203.83 per unit
B. $151.57 per unit
C. $355.40 per unit
D. $1,119.51 per unit
Transcribed Image Text: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 appears below: Expected Direct Labor Total Direct Production Hours Per Unit Labor Hours Product H2 130 6.3 819 Product EO 130 5.3 689 Total direct 1,508 labor hours The company's expected total manufacturing overhead is $267,968. If the company allocates all of its overhead based on direct labor hours, the overhead assigned to each unit of Product H2 would be: A. $203.83 per unit B. $151.57 per unit C. $355.40 per unit D. $1,119.51 per unit
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