Answer:
The correct answer is option (d).
Explanation:
According to the scenario, the computation for the given data are as follows:
Total labor hour for standard tents = 2,800 × 4 = 11,200 Labor per hour
Total labor hour for deluxe tents = 1,300 × 10 = 13,000 Labor per hour
Total labor hour = 11,200 + 13,000 = 24,200
Allocation rate for indirect manufacturing costs = Total costs / Total labor hours = $484,000 /24,200 = $20
So, Per unit overhead for standard tents = Labor hours per unit × Allocation rate
= 4 × $20 = $80
Per unit overhead for deluxe tents = Labor hours per unit × Allocation rate
= 10 × $20 = $200
So, $80 of overhead cost should be assigned to each standard camping tent and $200 of overhead cost should be assigned to each deluxe tent.
