Cassano, Inc

Cassano, Inc., manufactures and sells two products: Product C8 and Product E6. 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 $19.80 per DLH. The direct materials cost per unit is $145.10 for Product C8 and $181.00 for Product E6. The estimated total manufacturing overhead is $671,598. The unit product cost of Product C8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

A) $658.94 per unit
B) $470.00 per unit
C) $666.56 per unit
D) $348.74 per unit

Correct Answer:

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