Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Donnelly Corp. manufactures two products. The company's budgeted total overhead for 2011 is $350,000; of this amount, $276,000 relates to utilities and depreciation on automated equipment. In 2011, Donnelly expects to produce 200,000 of X and 300,000 units of Y. It takes 3.0 and 1.5 direct labor hours to produce one unit of X and Y, respectively. However, relative to the automated equipment, Product X requires 10 minutes per unit and Product Y requires 1 minute per unit. Product X and Y have unit contribution margins of $5 and $4, respectively.
-If Donnelly decided to assign the automation-related overhead costs to products based on production time, what would be the automation overhead cost per unit for Product X and Product Y?
Product X   Product Y

A) $0.15   $0.15
B) $0.45   $0.15
C) $0.55   $0.55
D) $0.79   $0.26
E) $1.20   $0.12