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Calculating Total PerUnit Cost. Make sure as you gather information on your production costs that you choose a fixed period. Choose an entire calendar year, for instance, or select a specific month.
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Add up the direct labor hours associated with each product (120 hours for Product J + 40 hours for Product K = 160 total hours). Now plug these numbers into the following equation: For every hour needed to make a product, you need to apply worth of overhead to that product.
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