The unit of cost for travel clocks if the total of cost is allocated based on labor hours is option F. $0.7.
Labor hours is known to be a term that connote the total number of projected hours that is also the actual hours to be functioned or worked.
It is known also to be that which have been worked by workers and they are said to be receiving an hourly wage that are directly employed on the work site.
Hence, The unit of cost for travel clocks if the total of cost is allocated based on labor hours is option F. $0.7.
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See full question below
Tiff's Corporation manufactures travel clocks and watches. Overhead costs are currently allocated using direct labor hours.
Clocks Watches Total
Direct labor hours (unit) 35,000 105,000 140,000
Units Shipped 75,000 45,000 120,000
Total Overhead Cost $210,000
What is the unit OH cost for travel clocks if the total OH cost is allocated based on labor hours?
A. $2.10
B. $52,500
C. $1.17
D. $3.50
E. $1.50
F. $0.7
