FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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- Please help mearrow_forwardAcme Company manufactures and sells two products, Product A and Product B. Acme's total manufacturing overhead cost is $112,000, and Acme applies overhead to jobs using three activity-based overhead rates, computed as follows: Activity Setups Machining Packaging $22.40 $20.80 Cost pool Allocation base Number of setups Machine hours $24.40 $24.80 ? ? $10,000 Units packed Units of allocation base Product A 20 setups 1,000 hours 150 units Product B 20 setups ? 350 units If Acme decides to use a plantwide overhead rate with machine hours as the allocation base, what would be its plantwide overhead rate? Allocation rate $300 per setup $18 per MH ?arrow_forwardMabry Organics manufacturers organic fruit snacks. They use a departmental method of allocating manufacturing overhead. Department A's predetermined overhead rate is $5.67 per direct labor hour. Department B's predetermined overhead rate is $14.88 per machine hour. Actual cost driver information per department is provided below. Department A Department B Actual direct labor hours 50,200 DL hours 23,400 DL hours Actual machine hours 48,900 machine hours 17,500 machine hours What is the total applied manufacturing overhead?arrow_forward
- Subject: acountingarrow_forwardA company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $11,400 Assembly Parts 4,500 4,500 217,800 Packaging Pieces 250 200 27,450 Machine Hours per Unit 4 3 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit ? ? B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit ? ?arrow_forward< overhead and direct labor hours. Painting Dept. Finishing Dept. Totals ring moving to a multiple department rate system for allocating overhead. The Direct Overhead Labor Hours (dlh) Product A $241,200 83,700 $324,900 10,800 dlh 10,100 20,900 dlh 7 dlh 3 10 dlh Product B 11 dlh 7 18 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.55 O b. $279.90 Oc. $155.50 O d. $156.33arrow_forward
- 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. $374,640 11,200 dlh 16 dlh 2 dlh Finishing Dept. 100,440 8,100 7 17 Totals $475,080 19,300 dlh 23 dlh 19 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.$622.00 per unit b.$33.45 per unit c.$277.70 per unit d.$12.40 per unitarrow_forwardAjayarrow_forwardA company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $11,400 Assembly Parts 4,500 4,500 217,800 Packaging Pieces 250 200 27,450 Machine Hours per Unit 4 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $4arrow_forward
- Help mearrow_forwardBlue 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. $259,500 10,600 dlh 12 dlh 7 dlh Finishing Dept. 72,700 8,000 2 16 Totals $332,200 18,600 dlh 14 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.$63.61 per unit b.$125.02 per unit c.$24.48 per unit d.$171.36 per unitarrow_forwardRex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400arrow_forward
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