00:02
Hello, let's calculate the approximate overhead cost per unit of product a.
00:14
So in order to calculate this, we need to divide the total overhead allocated to product a by the annual level of production.
00:28
So this level of production is given.
00:31
It's 34 ,300 units.
00:36
And we need to find the total overhead allocated.
00:42
So let's find activity 1 allocated to product a -line would be equal to we multiply the budget cost, which is 87 ,000 times the product a amount, which is 3, or multiplies by 3 ,000.
01:14
And we divide this by the sum of two products, product a and product b.
01:20
Together they give us 3 ,000 and 280, which is 5 .80...