Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a...
70.2K
Verified Solution
Link Copied!
Question
Accounting
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.
$411,768
12,900
dlh
15
dlh
2
dlh
Finishing Dept.
79,317
6,300
7
17
Totals
$491,085
19,200
dlh
22
dlh
19
dlh
Determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.
a.$31.92 per unit
b.$12.59 per unit
c.$277.87 per unit
d.$566.93 per unit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
