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. Overhead DirectLabor Hours (dlh) Product A B Painting Dept. $250,600 11,900 dlh 5 dlh 10 dlh Finishing Dept. 87,700 10,300 2 7 Totals $338,300 22,200 dlh 7 dlh 17 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $15.24 $259.08 $105.29 $106.68
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. Overhead DirectLabor Hours (dlh) Product A B Painting Dept. $250,600 11,900 dlh 5 dlh 10 dlh Finishing Dept. 87,700 10,300 2 7 Totals $338,300 22,200 dlh 7 dlh 17 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $15.24 $259.08 $105.29 $106.68
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 4E: Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry....
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Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory
Overhead |
Direct Labor Hours (dlh) |
Product | |||||||
A | B | ||||||||
Painting Dept. | $250,600 | 11,900 | dlh | 5 | dlh | 10 | dlh | ||
Finishing Dept. | 87,700 | 10,300 | 2 | 7 | |||||
Totals | $338,300 | 22,200 | dlh | 7 | dlh | 17 | dlh |
Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.
$15.24
$259.08
$105.29
$106.68
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