To calculate the per unit overhead costs under ABC

To calculate the per unit overhead costs under ABC -...

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To calculate the per unit overhead costs under ABC, the costs assigned to each product are divided  by the number of units produced. In this case, the unit cost for a hollow center ball is $0.52 and the  unit cost for a solid center ball is $0.44.  Under the traditional method of allocating overhead based on direct labor dollars, the total costs for  all balls would be divided by total direct labor dollars for all balls to determine the per unit cost.  Estimated direct labor costs for the year are $1,512,000, of which $378,000 is for hollow center balls  and $1,134,000 is for solid center balls. The per unit direct labor costs are $0.38 for hollow center 
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This note was uploaded on 11/16/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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To calculate the per unit overhead costs under ABC -...

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