Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 () Overhead A B $242,500 9,900 14 5 Painting Dept. Finishing Dept. 70,8008,800317 Totals $313,300 18,700 dih17 22 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
image text in transcribed
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 B $242,500 9,900 dih 14 dlh 5 dlh Painting Dept. Finishing Dept. 70,800 8,800 3 17 Totals $313,300 18,700 dih 17 dih 22 dih 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 Oa. $24.49 per unit Ob. S122.45 per unit Oc. 583.77 per unit Od. $40.23 per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

New Auditors Guide To Internal Auditing

Authors: Bruce R. Turner

1st Edition

1634540549, 978-1634540544

More Books

Students also viewed these Accounting questions

Question

(Appendix) What are sales returns? Why do sales returns occur? LO86

Answered: 1 week ago

Question

assess the infl uence of national culture on the workplace

Answered: 1 week ago