QUESTION60. In
a company, the monthly overhead costs of production are the depreciation costs
of the assembly machines. They amount to $100,000. The allocation base used to
allocate costs on products is the number of machine hours. The production level
for the month is estimated at 10,000 machine hours.

What is the level of overhead production costs to be allocated per unit
to Product 1 and 2, given that Product 1 requires 10 machine-hours per unit and
Product 2 requires 20 machine-hours per unit?

Question

QUESTION60. In
a company, the monthly overhead costs of production are the depreciation costs
of the assembly machines. They amount to $100,000. The allocation base used to
allocate costs on products is the number of machine hours. The production level
for the month is estimated at 10,000 machine hours.

What is the level of overhead production costs to be allocated per unit
to Product 1 and 2, given that Product 1 requires 10 machine-hours per unit and
Product 2 requires 20 machine-hours per unit?

Answer

None of the proposals mentioned

Answer

$1 (Product 1) and $2 (Product 2)

Answer

$100 (Product 1) and $200
(Product 2)

Answer

$10 (Product 1) and $20 (Product 2)

Crowdly

QUESTION60. In a company, the monthly overhead costs of production are the depr...

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