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. $232,900 8,200 dlh 13 dlh 3 dlh Finishing Dept. 71,100 9,200 2 18 Totals $304,000 17,400 dlh 15 dlh 21 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. $23.18 per unit b. $85.20 per unit c. $28.40 per unit d. $52.41 per unit
Overhead allocation rate for painting department=estimated overhead/estimated direct labor hours=232900/8200=$ 28.40 per direct labor hour | ||
Factory overhead allocated to product B=DL hours used by B in painting*overhead allocation rate=3*28.40=$ 85.20 per unit | ||
Answer is | ||
b. $ 85.20 per unit |
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single...
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. $248,200 11,600 dlh 15 dlh 4 dlh Finishing Dept. 74,800 8,100 2 18 Totals $323,000 19,700 dlh 17 dlh...
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. Product A B 13 dih Direct Labor Hours (dlh) 8,800 dih 6,300 15,100 dlh Painting Dept. Finishing Dept. 7 dlh Overhead $267,300 77,900 $345,200 7 18 Totals 20 dih...
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. Product Direct Labor Hours (dih) Overhead A B 11,100 dih 15 dih 6 dlh Painting Dept. Finishing Dept. 5464,646 105,506 7,100 7 20 Totals $570,152 18,200 dih 22 dlh...
Calculator 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...
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. Product Direct Labor Hours (din) Overhead A B Painting Dept $243,700 11,300 dith 12 din 6 dih Finishing Dept 72,400 7,100 7 20 Total $316,100 18,400 din 19 d...
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 $250,400 10,600 dlh 4 dlh 11 dlh Finishing Dept. 80,100 11,900 Totals $330,500 22,500 dlh 8 dlh 18 dih...
1 - 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 LaborHours (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...
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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 Product Direct Labor Hours (dlh) 11,600 dlh Overhead $348,580 40,964 $389,544 Painting Dept 13 dh 3 dlh Finishing Dept 4,900 16 Totals 16,500 dlh 16 dlh 19...
Calculator 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. А Direct Labor Product Overhead Hours dih) B $248,000 Painting Dept. 10,000 din 16 dih 4 dih Finishing Dept 72.000 10,000 4 16 Totals $320,000 20,000 dih 20...
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Adirondak 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. DLH per Product Total Direct Labor Hours Overhead $247,100 Painting Dept. Finishing Dept. 84,700 10,600 10,900 21,500 Totals $331,800 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. a. $7.77 per dih b. $15.43 per dih c. $23.31 per dih...