Levine Company Levine Company produces two products: A and B. The company has three overhead functions that are required for both products.
Below is production information for Products A and B:
The company produces 800 units of Product A and 8,000 units of Product B each period.
The overhead functions have the following hourly costs:
Refer to Levine Company If total overhead is assigned to A and B on the basis of overhead activity hours used, the total product cost per unit assigned to Product B will be
A) $115.50
B) $73.32
C) $34.60
D) None of the responses are correct.

Question

Levine Company Levine Company produces two products: A and B. The company has three overhead functions that are required for both products.
Below is production information for Products A and B:
 The company produces 800 units of Product A and 8,000 units of Product B each period.
The overhead functions have the following hourly costs:
 Refer to Levine Company If total overhead is assigned to A and B on the basis of overhead activity hours used, the total product cost per unit assigned to Product B will be
A) $115.50 
B) $73.32 
C) $34.60 
D) None of the responses are correct.

Quizplus · Accepted Answer

The Answer of Levine Company Levine Company produces two products: A and B. The company has three overhead functions that are required for both products.
Below is production information for Products A and B:
 The company produces 800 units of Product A and 8,000 units of Product B each period.
The overhead functions have the following hourly costs:
 Refer to Levine Company If total overhead is assigned to A and B on the basis of overhead activity hours used, the total product cost per unit assigned to Product B will be
A) $115.50 
B) $73.32 
C) $34.60 
D) None of the responses are correct.

Levine Company Levine Company Produces Two Products: a and B