The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Blinks Dinks Number of Labor Hours Units Per Unit 949 1,818 O a. $112.35 O b. $475.56 O c. $8.47 5 2 d. $44.93 Machine Hours Per Unit All of the machine hours take place in the Fabrication department, which has an estimated overhead of $93,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $95,100. 5 9 The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
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The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two
departments, Fabrication and Assembly. Data for the products and departments are listed below.
Product
Blinks
Dinks
Number of Labor Hours
Units
Per Unit
949
1,818
O a. $112.35
b. $475.56
c. $8.47
d. $44.93
5
2
Machine Hours
Per Unit
5
9
All of the machine hours take place in the Fabrication department, which has an estimated overhead of
$93,200. All of the labor hours take place in the Assembly department, which has an estimated total
overhead of $95,100.
The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours.
What is the overhead cost per unit for Blinks?
Transcribed Image Text:The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Blinks Dinks Number of Labor Hours Units Per Unit 949 1,818 O a. $112.35 b. $475.56 c. $8.47 d. $44.93 5 2 Machine Hours Per Unit 5 9 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $93,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $95,100. The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks?
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