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. Direct Product Overhead Labor Hours (dlh) A Painting Dept. $258,100 10,500 dlh 3 dlh 12 dlh Finishing Dept. 88,100 10,400 5 7 Totals $346,200 20,900 dlh 8 dlh 19 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $73.74 Ob. $314.64 Oc. $16.56 Od, $132.48

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. Direct Product Overhead Labor Hours (dlh) A Painting Dept. $258,100 10,500 dlh 3 dlh 12 dlh Finishing Dept. 88,100 10,400 5 7 Totals $346,200 20,900 dlh 8 dlh 19 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $73.74 Ob. $314.64 Oc. $16.56 Od, $132.48

Name: Blue Ridge Marketing Inc. manufactures two products, A and B. Present
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Description: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocatingoverhead to products. However, management is considering moving to a multiple department rate system for

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 14E

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