Silver Streak Company manufactures two products, A and B, and incurs overhead costs in two production departments, Mixing and Filling. The annual overhead costs in each production department are as follows:
●Mixing Dept. overhead = $155,000 + $25 per machine-hour
●Filling Dept. overhead = $280,000 + $60 per machine-hour
●Each unit of Product A requires 1 machine-hour in the Mixing Department and 3 hours in the Filling Department.
●Each unit of Product B requires 5 hours in the Mixing Department and 2 hours in the Filling Department.
During 2017, 30,000 units of A and 25,000 units of B were produced.
Calculate the total overhead costs assigned to a unit of Product B, assuming departmental overhead rates based on machine-hours are used.
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