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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.
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 12 dlh 2 dlh Painting Dept. Finishing Dept. $427,280 58,522 14,000 dlh 5,800 2 16 Totals $485,802 19,800 dih 14 dlh 18 dlh Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system. Oa. $386.42 per unit Ob. $10.09 per unit Oc. $30.52 per unit Od. $222.48 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. Product Direct Labor Hours (dih) Overhead A B 3 dlh 8 dlh Painting Dept. Finishing Dept. $248,700 64,000 $312,700 11,400 din 11,700 2 7 Totals 23,100 dlh 5 dlh 15 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. O $67.70 O $13.54 O $203.10 O $65.45 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 B 10,500 7 8 Painting Dept. Finishing Dept. $256,600 63,200 11,800 5 6 Totals $319,800 22,300 12 14 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. Oa. $2.17 per dlh Ob. $14.34 per dlh Oc. $24.44 per dlh Od. $5.36 per dlh
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