50.1K

Verified Solution

Link Copied!

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.	$248,000		10,000	dlh		16	dlh	4	dlh
Finishing Dept.	72,000		10,000			4		16
Totals	$320,000		20,000	dlh		20	dlh	20	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.$99.20 per unit

b.$64.00 per unit

c.$49.60 per unit

d.$28.80 per unit

2-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.	$258,800		11,900	dlh		7	dlh	8	dlh
Finishing Dept.	76,400		10,400			5		7
Totals	$335,200		22,300	dlh		12	dlh	15	dlh

Using a single plantwide rate, the factory overhead allocated per unit of Product B is

a.$15.03

b.$225.45

c.$180.36

d.$152.24

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. Direct Product Overhead Labor Hours (dlh) A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 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 Oa. $99.20 per unit Ob. $64.00 per unit Oc. $49.60 per unit Od. $28.80 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. Direct Product Overhead Labor Hours (dlh) A B Painting Dept. $258,800 11,900 dih 7 dlh 8 dlh Finishing Dept. 76,400 10,400 5 7 Totals $335,200 22,300 dlh 12 dlh 15 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.03 Ob. $225.45 Oc. $180.36 Od. $152.24

Answer & Explanation Solved by verified expert

See Answer