Answer: $15
Explanation:
Given the following ;
Direct material cost for product B = $ 15,000
Direct labor cost for product B = $24,000
Direct labor for product A = $12,000
Allocated overhead based on direct labor cost = $54,000
Number of units of product B produced = 5000
Total product cost B = Direct labor cost of product B+ Direct material cost of product B+ overhead cost of product B
Overhead cost of product B based on direct labor cost = company's allocated overhead × (direct labor cost of product B ÷ Total direct labor cost of product A and B)
Total direct labor cost of product A and B = $12,000 + $24,000 = $36,000
Overhead cost of product B based on direct labor cost = $54,000 × ($24,000 / $36,000)
=$36,000
Total product cost B = $24,000 + $15,000 + $36,000 = $75,000
Therefore cost per unit if product B = Total costing of product B ÷ Number of units produced
= $75,000 ÷ 5000 = $15
