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Decenzo, Inc

Question 71

Multiple Choice

Decenzo, Inc., manufactures and sells two products: Product L4 and Product O1.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Decenzo, Inc., manufactures and sells two products: Product L4 and Product O1.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:   The direct labor rate is $18.20 per DLH.The direct materials cost per unit is $267.20 for Product L4 and $292.20 for Product O1.The estimated total manufacturing overhead is $774,120. The unit product cost of Product L4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: A) $921.14 per unit B) $672.08 per unit C) $805.36 per unit D) $1,268.62 per unit The direct labor rate is $18.20 per DLH.The direct materials cost per unit is $267.20 for Product L4 and $292.20 for Product O1.The estimated total manufacturing overhead is $774,120. The unit product cost of Product L4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:


A) $921.14 per unit
B) $672.08 per unit
C) $805.36 per unit
D) $1,268.62 per unit

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