UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

206. Correct answer a. The per unit overhead cost allocation of receiving costs for product A is

$3.75 as shown below.

Receiving costs per order: $450,000 ÷ (50 + 150) = $2,250

Per unit of Product A: (50 x $2,250) ÷ 30,000 = $3.75