Question
PLEASE answer all of the follwing, thank you very much! Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single
PLEASE answer all of the follwing, thank you very much!
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.
Overhead | Total Direct Labor Hours | DLH per Product | ||||
A | B | |||||
Painting Dept. | $259,200 | 10,800 | 2 | 6 | ||
Finishing Dept. | 85,300 | 11,200 | 3 | 4 | ||
Totals | $344,500 | 22,000 | 5 | 10 |
Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc.
a.$31.32 per unit
b.$15.66 per unit
c.$360.00 per unit
d.$48.00 per unit
The 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.
Product | Number of Units | Labor Hours Per Unit | Machine Hours Per Unit |
Blinks | 1,065 | 4 | 5 |
Dinks | 2,030 | 2 | 7 |
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $104,800. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $77,200.
The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks?
a.$308.85
b.$43.76
c.$8.82
d.$35.01
The Roget Factory has determined that its budgeted factory overhead budget for the year is $6,012,900. They plan to produce 1,000,000 units. Budgeted direct labor hours are 393,000 and budgeted machine hours are 375,000. Using the single plantwide factory overhead rate based on direct labor hours, calculate the factory overhead rate for the year.
a.$15.30
b.$7.65
c.$19.89
d.$73.44
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