Expected to sell 31,000 units next year and Product L is expected to sell 6,200 units. A unit of either product requires 0.7 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $2,213,400.
Required:
Allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? (Round your answers to 2 decimal places.)
Product H
Product L
Overhead cost per unit
$59.50
$59.50
1-b. Compute the total amount of overhead cost that would be applied to each product.
Product H
Product L
Total
Total overhead cost
$1,844,500
$368,900
$2,213,400