Access by traditional method

Cost driver labor hour =90000

MOH = 900000
MCD 1 MCD 2
Actual direct material 100 200
Actual direct labor 60 80
Total prime cost 160 280

10000 labor hour used to produce 5000 unit MCD 1

5000 labor hour used to produce 4000 unit MCD 2

Solution
Predetermined overhead rate = 900000 = $ 10 per labor hour
90000
MCD 1
MOH rate = $ 10/lh * 10000 lh = $ 100000
100000
5000 units = 20

MCD 2
MOH rate = $ 10/lh *5000 lh = 50000
50000
4000 units = 12.5
Product unit cost
Product cost per unit MCD 1 MCD 2
Actual direct material 100 200
Actual direct labor 60 80
Manufacture overhead 20 12.5
Product unit cost 180 292.5