Answer:
$3; $4.5
Explanation:
Total direct labor hour:
= Handbags + Moccasins
= (60,000 × 2) + (40,000 × 3)
= 120,000 + 120,000
= 240,000 direct labor hours
Total Overheads = $360,000
Overhead rate per direct labor hour:
= Total Overheads ÷ Direct labor hour
= $360,000 ÷ 240,000
= $1.5
Total OH cost per unit for handbags:
= OH rate per DLH × DLH per unit
= $1.5 × 2
= $3
Total OH cost per unit for Moccasins:
= OH rate per DLH × DLH per unit
= $1.5 × 3
= $4.5