Assuming use of direct-labor hours to apply overhead to production,
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period is $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Enhanced: Estimated production volume 3,000 units 4,000 units Direct-material cost $25 per unit $40 per unit Direct labor per unit 3 hours at $12 […]
