Please answer the following question. Please make sureto include all calculations. Thank you!131. Glassman CompanyGlassman Company produces two products: A and B. The company has three overhead functions that arerequired for both products.Below is production information for Products A and B:ProductABFunctionPrime Costs (DirectMaterials + DirectLabor)3$35$22Direct Labor Hours OverheadFunction #1Hourly Rate$107184 hrs1.5 hrs2 hrs.1 hrThe company produces 800 units of Product A and 8,000 units of Product B each period.The overhead functions have the following hourly costs:OverheadFunction #21 hr8 hrs.OverheadFunction #36 hrs1 hrRefer 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 unitassigned to Product A will beA. $86.32.B. $95.00.C. $115.50.D. None of the responses are correct.

Assigning total overheadc to products based on overhead activity hours used means allocating the…

131. 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 A B Prime Costs (Direct Materials + Direct Labor) Function $35 $22 Direct Labor Hours Overhead Function #1 Hourly Rate $10 7 18 4 hrs. 1.5 hrs 2 hrs. 1 hr Overhead Function #2 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: 1 hr 8 hrs Overhead Function #3 6 hrs 1 hr 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.

131. 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 A B Prime Costs (Direct Materials + Direct Labor) Function $35 $22 Direct Labor Hours Overhead Function #1 Hourly Rate $10 7 18 4 hrs. 1.5 hrs 2 hrs. 1 hr Overhead Function #2 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: 1 hr 8 hrs Overhead Function #3 6 hrs 1 hr 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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