Glassman Company Glassman 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:

Product Prime Costs (Direct Materials + Direct Labor) Direct Labor Hours Overhead Function #1 Overhead Function #2 Overhead Function #3

A $35 4 hrs 2 hrs 1 hr 6 hrs

B $22 1.5 hr 1 hr 8 hrs 1 hr

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: $$\begin{array} { | l | l | } \hline \text { Function } & \text { Hourly Ratr } \ \hline 1 & \$ 10 \ \hline 2 & 7 \ \hline 4 & 18 \ \hline \end{array}$$ Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced,Product A will have an overhead cost per unit ofB.The company has three overhead functions that are required for both products. Below is production information for Products A and B:

Product Prime Costs (Direct Materials + Direct Labor) Direct Labor Hours Overhead Function #1 Overhead Function #2 Overhead Function #3

A $35 4 hrs 2 hrs 1 hr 6 hrs

B $22 1.5 hr 1 hr 8 hrs 1 hr

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: $$\begin{array} { | l | l | } \hline \text { Function } & \text { Haurly Rate } \ \hline 1 & \$ 10 \ \hline 2 & 7 \ \hline 4 & 18 \ \hline \end{array}$$ Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced,Product A will have an overhead cost per unit of A)$ 88.64. B)$123.64. C)$135.00. D)None of the responses are correct.

Question

Glassman Company Glassman 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:

Product	Prime Costs (Direct Materials + Direct Labor)	Direct Labor Hours	Overhead Function #1	Overhead Function #2	Overhead Function #3
A	$35	4 hrs	2 hrs	1 hr	6 hrs
B	$22	1.5 hr	1 hr	8 hrs	1 hr

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: $$\begin{array} { | l | l | } \hline \text { Function } & \text { Hourly Ratr } \ \hline 1 & \$ 10 \ \hline 2 & 7 \ \hline 4 & 18 \ \hline \end{array}$$ Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced,Product A will have an overhead cost per unit ofB.The company has three overhead functions that are required for both products. Below is production information for Products A and B:

Product	Prime Costs (Direct Materials + Direct Labor)	Direct Labor Hours	Overhead Function #1	Overhead Function #2	Overhead Function #3
A	$35	4 hrs	2 hrs	1 hr	6 hrs
B	$22	1.5 hr	1 hr	8 hrs	1 hr

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: $$\begin{array} { | l | l | } \hline \text { Function } & \text { Haurly Rate } \ \hline 1 & \$ 10 \ \hline 2 & 7 \ \hline 4 & 18 \ \hline \end{array}$$ Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced,Product A will have an overhead cost per unit of A)$ 88.64. B)$123.64. C)$135.00. D)None of the responses are correct.

Quizplus · Accepted Answer

Overhead cost per unit of Product A = (Total overhead cost / Total units produced) * Units of Product A producedTotal overhead cost = (Overhead function #1 hourly rate * Overhead function #1 hours) + (Overhead function #2 hourly rate * Overhead function #2 hours) + (Overhead function #3 hourly rate * Overhead function #3 hours)Total overhead cost = ($10 * 2,400 hours) + ($7 * 1,200 hours) + ($18 * 1,200 hours) = $60,000Total units produced = 800 units of Product A + 8,000 units of Product B = 8,800 unitsOverhead cost per unit of Product A = ($60,000 / 8,800 units) * 800 units = $88.64

Glassman Company Glassman Company Produces Two Products: a and B

Glassman Company
Glassman Company Produces Two Products: a and B