Whisper, Inc. produces two products, B-X4 and X-C12. B-X4 is a high-volume item

Question

Whisper, Inc. produces two products, B-X4 and X-C12. B-X4 is a high-volume item totaling 20,000 units annually. X-C12 is a low-volume item totaling only 6,000 units per year. B-X4 requires one hour of direct labor for completion, while each unit of X-C12 requires 2 hours. Therefore, total annual direct labor hours are 32,000 (20,000 + 12,000). Expected annual manufacturing overhead costs are $1,600,000. Whisper uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of X-C12 would be assigned overhead of

need more information to compute.

B :

$100.00.

C :

$50.00.

D :

$61.54.

Explanation / Answer

B-X4 X-C12 total units 20000 6000 labor hours 20000 12000 32000 overhead 1000000 600000 1600000 overhead per unit 50 100 so option b is correct

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