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

Question 23

Multiple Choice

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:
 Function  Haurly Rate1$1027318\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 A will be


A) $86.32.
B) $95.00.
C) $115.50.
D) None of the responses are correct.

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