Unit-level product costing assigns
A)direct materials and direct labor directly to products and assigns overhead to departmental pools which are assigned to products using predetermined overhead rates based on unit-level drivers.
B)direct materials, direct labor and overhead to departmental cost pools which are assigned to products using predetermined overhead rates based on unit-level drivers.
C)direct materials and direct labor directly to products and assigns overhead to departmental pools which are assigned to products using predetermined overhead rates based on non-unit level drivers.
D)direct materials, direct labor and overhead to departmental cost pools which are assigned to products using predetermined overhead rates based on non-unit level drivers.

Question

Quizplus · Accepted Answer

Unit-level product costing assigns direct materials and direct labor directly to products and assigns overhead to departmental pools which are assigned to products using predetermined overhead rates based on unit-level drivers. This means that the cost of producing a unit of product is calculated by taking into account the direct materials and direct labor used, as well as a share of the overhead costs incurred by the department producing that product. The overhead costs are assigned to departmental pools based on unit-level drivers such as machine hours or labor hours, which are then used to determine the predetermined overhead rate for each department. This method of product costing is widely used in manufacturing and allows for more accurate unit cost calculations.

Unit-Level Product Costing Assigns