You got ______ utility from eating the 1st pie than eating the 3rd pie.
2 answers:
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Answer:
b. $156.59
Explanation:
Note: The full question is attached as picture below
As the company is under traditional costing system and the allocation base is machine hours.
Variable OH per hour = Total variable cost / Total machine hours
Variable OH per hour = 513,600/32,000
Variable OH per hour = $16.05
Average cost of producing one unit of widget = Direct material per hour + Direct labor per hour + Variable OH per hour
= $95.52 + $51.04 + ($16.05*750/1200)
= $95.52 + $51.04 + $10.03
= $156.59
