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. $259,500 8,500 dlh 12 dlh 7 dlh Finishing Dept. 73,600 8,600 7 16 Totals $333,100 17,100 dlh 19 dlh 23 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.$213.71 per unit b.$136.36 per unit c.$59.91 per unit d.$30.53 per unit
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. $259,500 8,500 dlh 12 dlh 7 dlh Finishing Dept. 73,600 8,600 7 16 Totals $333,100 17,100 dlh 19 dlh 23 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.$213.71 per unit b.$136.36 per unit c.$59.91 per unit d.$30.53 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
OverheadDirect
Labor Hours (dlh)Product A B Painting Dept. $259,500 8,500 dlh 12 dlh 7 dlh Finishing Dept. 73,600 8,600 7 16 Totals $333,100 17,100 dlh 19 dlh 23 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.$213.71 per unitb.$136.36 per unitc.$59.91 per unitd.$30.53 per unit
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