Glassman Company Glassman Company produces two products: A andB.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: $$\begin{array} { | l | l | } \hline \text { Function } & \text { Haurly Rate} \ \hline 1 & \$ 10 \ \hline 2 & 7 \ \hline 3 & 18 \ \hline \end{array}$$ Refer to Glassman 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

Glassman Company Glassman Company produces two products: A andB.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: $$\begin{array} { | l | l | } \hline \text { Function } & \text { Haurly Rate} \ \hline 1 & \$ 10 \ \hline 2 & 7 \ \hline 3 & 18 \ \hline \end{array}$$ Refer to Glassman 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

To calculate the total product cost per unit for Product B, we need to consider both the prime costs and the overhead costs based on the activity hours used.Prime cost for Product B is given as $22.Overhead costs for Product B:- Function #1: 1 hour at $10/hour = $10- Function #2: 8 hours at $7/hour = $56- Function #3: 1 hour at $18/hour = $18Total overhead cost for Product B = $10 + $56 + $18 = $84Total cost for Product B = Prime cost + Overhead cost = $22 + $84 = $106Since $106 is not one of the given options, the correct answer is D) None of the responses are correct.

Glassman Company Glassman Company Produces Two Products: a AndB Refer to Glassman Company If Total Overhead Is Assigned to Has

Glassman Company
Glassman Company Produces Two Products: a AndB Refer to Glassman Company If Total Overhead Is Assigned to Has