Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory o rate for allocating overhead to products. However, management is considering moving to a multiple department rate syste allocating overhead. The following table presents information about estimated overhead and direct labor hours. Product Overhead $248,000 72,000 $320,000 The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the ma production department factory overhead rate method is Painting Dept. Finishing Dept. Totals Direct Labor Hours (dlh) O a. $396.80 per unit Ob. $425.60 per unit Oc. $214.40 per unit Od. $320.00 per unit 10,000 dih 10,000 20,000 dih A 16 dlh 4 20 dlh B 4 dlh 16 20 dih

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory o rate for allocating overhead to products. However, management is considering moving to a multiple department rate syste allocating overhead. The following table presents information about estimated overhead and direct labor hours. Product Overhead $248,000 72,000 $320,000 The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the ma production department factory overhead rate method is Painting Dept. Finishing Dept. Totals Direct Labor Hours (dlh) O a. $396.80 per unit Ob. $425.60 per unit Oc. $214.40 per unit Od. $320.00 per unit 10,000 dih 10,000 20,000 dih A 16 dlh 4 20 dlh B 4 dlh 16 20 dih

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 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...

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