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:

ProductPrime Costs (Direct Materials + Direct Labor)Direct Labor HoursOverhead Function #1Overhead Function #2Overhead Function #3A$354 hrs2 hrs1 hr6 hrsB$221.5 hrs1 hr8 hrs1 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:

FunctionHourly Rate1$1027318

Refer to Locke Company If total overhead is assigned to A and B on the basis of direct labor hours, Product A will have an overhead cost per unit of

Select one:

a. None of the responses are correct

b. $461.88

c. $51.32

d. $205.26

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