Unformatted text preview: Number of units produced 3000 12000 overhead cost per unit 275 80 Model N 800 XL Model N500 Direct Material 75 25 Direct Labor @ 18 54 18 Manufacturing overhead cost 275 80 unit product cost 404 123 Part 3. When we used only the direct labor-hours as the base for overhead cost, we did not take other parts of the manufacturing overhead into account, like number of setups. In the activity based costing, we used each individual part of the production process to calculate the manufacturing overhead cost. Hence, manufacturing overhead cost shifted under activity-based costing....
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- Spring '10
- Accounting, Harshad number, @, MH General