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

question 11

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:

• A)$51.32
• B)$205.26
• C)$461.88
• D)None of the responses are correct.

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 direct labor hours,Product A will have an overhead cost per unit of

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to customers.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

February

Known as the second month in the Gregorian calendar, it has 28 days in standard years and 29 days in years classified as leap years.

Unit Product Cost

The total cost associated with producing one unit of product, calculated by summing all relevant variable and fixed costs.