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 Direct Labor Hours (dlh) Product  A   B  Painting Dept. $248,000   10,000 dlh   16 dlh 4 dlh Finishing Dept. 72,000   10,000     4   16       Totals $320,000   20,000 dlh   20 dlh 20 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a.$64.00 per unit b.$28.80 per unit c.$99.20 per unit d.$49.60 per unit

Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Setting up equipment Ordering materials Machining Receiving Expected Cost Activity Driver $126,000 Number of setups 18,000 Number of orders 126,000 Machine hours 30,000 Receiving hours Units completed Number of setups Receiving hours Required: 1. Determine the total overhead assigned to each product using the four activity drivers. 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. 3. Using ABC as the benchmark, calculate the percentage error and comment on the accuracy of the reduced system. Explain why this approach may be desirable. Exercise 4-23 Equally Accurate Reduced ABC System Refer to Exercise 4-22. Required: 1. Calculate the global consumption ratios for…

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. $473,696   11,300 dlh   15 dlh 4 dlh Finishing Dept. 51,744   4,900     5   18       Totals $525,440   16,200 dlh   20 dlh 22 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.$357.76 per unit b.$41.92 per unit c.$681.60 per unit d.$10.56 per unit

Dhapa