In: Accounting
Assume a product has the following activities and overhead costs:
Production ($40 per labor hour)
Assembly ($25 per labor hour)
Quality Inspection ($100 per inspection)
Also assume that each product requires 5 hours of direct labor hours for production, 4 hours of direct labor hours for assembly, and one inspection for every 10 units produced.
If the company produces 100 units, what is the total overhead cost?