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. Painting Dept. Finishing Dept. Totals Overhead a. $46.20 per unit Ob. $33.61 per unit Oc. $16.79 per unit d. $23.10 per unit $265,600 72,200 $337,800 Direct Labor Hours (dih) 11,500 dlh 8,600 20,100 dlh Product A 13 dlh 2 15 dih B 2 dlh 15 17 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.
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. Painting Dept. Finishing Dept. Totals Overhead a. $46.20 per unit Ob. $33.61 per unit Oc. $16.79 per unit d. $23.10 per unit $265,600 72,200 $337,800 Direct Labor Hours (dih) 11,500 dlh 8,600 20,100 dlh Product A 13 dlh 2 15 dih B 2 dlh 15 17 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 2CMA: John Sheng, a cost accountant at Starlet Company, is developing departmental factory overhead...
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