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Locke Company produces two products: A and B. The company has three overhead functions that are required for both products. Below is production information for

Locke 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: Prime Costs Direct (Direct Materials + Labor Overhead Overhead Overhead Product Direct Labor) Hours Function #1 Function #2 Function #3 A B $35 4 hrs $22 1.5 hrs 2 hrs 1 hr 1 hr 8 hrs 6 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: Function Hourly Rate 1 2 3 $10 7 18 Refer to Locke 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 Select one: a. $88.64 b. $87.75 c. None of the responses are correct d. $76.97 Refer to Locke 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 Select one: a. $95.00 b. $115.50 c. None of the responses are correct d. $86.32 Refer to Locke 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 Select one: a. $51.32 b. $76.97 c. $510.32 d. None of the responses are correct Refer to Locke 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 B will be Select one: a. $73.32 b. None of the responses are correct c. $115.50 d. $34.60

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