Exercise 3-4 Contrast ABC and Conventional Product Costs
[LO3-4]
Pacifica Industrial Products Corporation makes two products,
Product H and Product L. Product H is expected to sell 39,000 units
next year and Product L is expected to sell 7,800 units. A unit of
either product requires 0.3 direct labor-hours.
The company's
total manufacturing overhead for the year is expected to be
$1,193,400.
Required:
1-a.
The company currently applies manufacturing overhead to products
using direct labor-hours as the allocation base. If...