Compute the overhead to be allocated to each product based on Activity Based Costing
The company adopts activity based costing

Overhead now consists of:

Manufacturing costs 70,000
Based on direct labor hours 1,000
Engineering Costs 30,000
Based on engineering hours 300

Direct Labor Hours:
Product A: 5
Product B: 2

Engineering Hours:
Product A: 1
Product B: 4

Compute the overhead to be allocated to each product based on Activity Based Costing
 

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