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Carrolton Inc. produces two types of laptop computer, J and T. In case of T model,...

Carrolton Inc. produces two types of laptop computer, J and T. In case of T model, direct materials cost per unit and direct labor cost per unit are given as $200 and $150 respectively. Allocated overhead costs based on ABC costing system is 32,000 and number of T products are 500. What is total production cost per unit of T model?

a.

350
b.

408
c.

414
d.

500
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Answer #1

Total production cost = Direct Materials + Direct Labor + Allocated overhead

= 200 + 150 + (32,000/500).

= 414

Option C is the answer
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