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. Finishing Dept. $265,500 27,100 $342,600 9,400 dlh 9,900 19,300 dlh 15 dlh 2 17 dlh 3 dlh 12 20 dlh Totals 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. $53.25 per unit b. $84.72 per unit c. $23.36 per unit d. $28.24 per unit Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Activity Cost Activity Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes Production 1,500,000 Machine hours Number Units Number of Number of Number Number of Purchase Production of Engineering Orders Orders Moves changes 4,000 1,400 4,000 80010 12,000 800 4,000 300 Machine Hours 2,000 8,000 10,000 Disk drives Tape drives Wire drives 2,000 150 4,000 2,500 The activity rate for the production cost pool is a. $176.47 per machine hour b. $150.00 per machine hour c. $75.00 per machine hour d. $62.50 per machine hour Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit Product Blinks Dinks 1,091 2,086 MT All of the machine hours take place in the Fabrication department, which has an estimated overhead of $81,800. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $77,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a. $18.85 Ob. $41.16 c. $232.82 Od. $54.89 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. Finishing Dept. $265,500 27,100 $342,600 9,400 dlh 9,900 19,300 dlh 15 dlh 2 17 dlh 3 dlh 12 20 dlh Totals 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. $53.25 per unit b. $84.72 per unit c. $23.36 per unit d. $28.24 per unit Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Activity Cost Activity Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes Production 1,500,000 Machine hours Number Units Number of Number of Number Number of Purchase Production of Engineering Orders Orders Moves changes 4,000 1,400 4,000 80010 12,000 800 4,000 300 Machine Hours 2,000 8,000 10,000 Disk drives Tape drives Wire drives 2,000 150 4,000 2,500 The activity rate for the production cost pool is a. $176.47 per machine hour b. $150.00 per machine hour c. $75.00 per machine hour d. $62.50 per machine hour Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit Product Blinks Dinks 1,091 2,086 MT All of the machine hours take place in the Fabrication department, which has an estimated overhead of $81,800. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $77,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a. $18.85 Ob. $41.16 c. $232.82 Od. $54.89
