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Ganges, Inc. manufactures two products, A and B, and incurs overhead costs in two production departments: Mixing and Filling. The equation for annual overhead costs
Ganges, Inc. manufactures two products, A and B, and incurs overhead costs in two production departments: Mixing and Filling. The equation for annual overhead costs in each production department is as follows: Mixing Dept, overhead = $350,000 + $20 per machine-hour Filling Dept, overhead = $400,000 + $50 per machine-hour Each unit of product A requires 2 machine-hours in the Mixing Department and 3 hours jn the Filling Department. Each unit of product B requires 7.5 hours in the Mixing Department and 1.25 hours in the Filling Department. During 2015, 27, 500 units of A and 20,000 units of B were produced. Calculate the total overhead costs assigned to a unit of product A, assuming plant wide overhead rates based on machine-hours are used. (Round to two decimal places, when necessary.)
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