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 overhead activity hours used, the total product cost per unit assigned to Product B will be

Select one:

a. $73.32

b. $115.50

c. None of the responses are correct

d. $34.60