.[The following information applies to the questions displayed below.]
Knickknack, Inc., manufactures two products: odds and ends. The firm uses a single, plantwide overhead rate based on direct-labor hours. Production and product-costing data are as follows:
Odds Ends
Production quantity 1,000 units 5,000 units
Direct material $ 160 $ 240
Direct labor (not including setup time) 120 (4 hr. at $30) 180 (6 hr. at $30)
Manufacturing overhead* 384 (4 hr. at $96) 576 (6 hr. at $96)
Total cost per unit $ 664 $ 996
