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. $309,088 10,400 dlh 12 dlh 3 dlh Finishing Dept. 46,852 5,300 6 16 Totals $355,940 15,700 dlh 18 dlh 19 dlh The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a.$230.60 per unit b.$8.84 per unit c.$29.72 per unit d.$409.68 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. $309,088 10,400 dlh 12 dlh 3 dlh Finishing Dept. 46,852 5,300 6 16 Totals $355,940 15,700 dlh 18 dlh 19 dlh The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a.$230.60 per unit b.$8.84 per unit c.$29.72 per unit d.$409.68 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. $309,088 10,400 dlh 12 dlh 3 dlh Finishing Dept. 46,852 5,300 6 16 Totals $355,940 15,700 dlh 18 dlh 19 dlh The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is
a.$230.60 per unitb.$8.84 per unitc.$29.72 per unitd.$409.68 per unit
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