Multiple Choice
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:
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:
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.
Correct Answer:
Verified
Correct Answer:
Verified
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