The Monthly Indirect Production Cost Is Depreciation Expense on Assembly $\begin{array}{ll}&\text { Product } 1&\text { Product } 2\\A)&\$ 1 & \$ 2 \\B)&\$ 10 & \$ 20 \\C)&\$ 100 & \$ 200\end{array}$

Short Answer

The monthly indirect production cost is Depreciation Expense on Assembly Equipment of $100,000.The cost allocation base is number of machine hours.The expected level of production in a month is 10,000 machine hours.What is the amount of indirect production cost per unit assigned to Product 1 and Product 2.Product 1 requires 10 machine hours per unit.Product 2 requires 20 machine hours per unit.
$\begin{array}{ll}&\text { Product } 1&\text { Product } 2\\A)&\$ 1 & \$ 2 \\B)&\$ 10 & \$ 20 \\C)&\$ 100 & \$ 200\end{array}$
D) none of the above