Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and...

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Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. D

business accounting

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Answer 1

Answer #1

Overhead rate per labor hours = Total overheads/Total labor hours

= (117800+102100)/(1049*2+1994*7)

= $13.6958 per labor hour

i.e. $13.70 per hour

Allocated per unit of Dinks = Labor hours per unit*rate

= 7*13.70

= $95.90

Hence, the answer is b.

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Answer 2

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