6) Rivera Company manufactured two products, A and B, during April. For purposes of product...
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6) Rivera Company manufactured two products, A and B, during April. For purposes of product costing, an overhead rate of $2.00 per direct-labor hour was used, based on budgeted annual factory overhead of $500,000 and 250,000 budgeted annual direct-labor hours, as follows: Department 1 Budgeted Budgeted Overhead Hours $300,000 200,000 | 200,000 50,000 $500,000 250,000 Department 2 The number of labor hours required to manufacture each of these products was: Product A Product B In Department 1 In Department 2 Total T4 T4 ml + During April, production units for products A and B were 1,000 and 3,000, respectively. Required: (1) Using a plantwide overhead rate, what are total overhead costs assigned to products A and B, respectively? (2) Using departmental overhead rates, what are total overhead costs assigned to products A and B, respectively? (3) Assume that materials and labor costs per unit of Product B are $10 and that the selling price is established by adding 40% of total costs to cover profit and selling and administrative expenses. What difference in selling price would result from the use of departmental overhead rates
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