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

question 50

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)$76.97
• B)$87.75
• C)$88.64
• 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 B will have an overhead cost per unit of

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Definitions:

Anosognosia

A condition in which a person is unaware of their own mental health condition or cannot perceive their condition accurately.

Left Hemisphere

The left side of the brain, often associated with logical reasoning, analytical processes, and language skills.

Language

A system of communication using sounds, symbols, or gestures that are combined in meaningful ways according to a set of rules.

Corpus Callosum

A large band of neural fibers connecting the two hemispheres of the brain, facilitating interhemispheric communication.