If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product C5 would be closest to:
A)$693.44 per unit
B)$965.80 per unit
C)$424.71 per unit
D)$476.74 per unit

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $1,059,155 ÷ 16,800 DLHs = $63.04 per DLH (rounded)
Product C5: 11.0 DLHs × $63.04 per DLH = $693.44

If the Company Allocates All of Its Overhead Based on Direct