Question
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
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 | 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 hrs | 1 hr | 8 hrs | 1 hr |
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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 | Hourly Rate |
1 | $10 |
2 | 7 |
3 | 18 |
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Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced, Product A will have an overhead cost per unitGlassman 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 | 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 hrs | 1 hr | 8 hrs | 1 hr |
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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 | Hourly Rate |
1 | $10 |
2 | 7 |
3 | 18 |
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Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced, Product A will have an overhead cost per unit
Refer to Glassman Company If total overhead is assigned to A and B on the basis of units produced, Product B will have an overhead cost per unit of
Please show calculations! I am lost..
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