Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as

Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows:
\table[[Product,\table[[Number of],[Units]],\table[[Direct Labor Hours],[Per Unit]],\table[[Machine Hours],[Per Unit]]],[Blinks,990,3,8],[Dinks,2,230,4,6]]
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $117,300. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $77,200.
Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate (rounded to the nearest cent), if it is based on machine hours instead of labor hours, is
a. $11.41 per machine hour
b. $21.00 per machine hour
c. $9.13 per machine hour
d. $7.31 per machine hour
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Management Accounting Information for Decision-Making and Strategy Execution

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

6th Edition

137024975, 978-0137024971

More Books

Students also viewed these Accounting questions

Question

\f

Answered: 1 week ago