Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. A Direct Overhead Labor Hours (dlh) Painting Dept. Finishing Dept. Totals B Product $575,140 55,896 $631,036 21,700 dlh 19 dlh 26 dlh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a. $8.22 per unit b. $38.60 per unit c. $396.00 per unit d. $520.74 per unit 14,900 6,800 dlh 12 dlh 6 7 20 dlh
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. A Direct Overhead Labor Hours (dlh) Painting Dept. Finishing Dept. Totals B Product $575,140 55,896 $631,036 21,700 dlh 19 dlh 26 dlh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a. $8.22 per unit b. $38.60 per unit c. $396.00 per unit d. $520.74 per unit 14,900 6,800 dlh 12 dlh 6 7 20 dlh
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...
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