Question
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
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 | 1,193 | 4 | 7 |
Dinks | 1,840 | 3 | 9 |
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $115,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $92,700.
The Ramapo Company uses a single overhead rate to apply all overhead costs. What would the single plantwide rate be if it was based on machine hours instead of labor hours?
a.$10.45 per machine hour
b.$8.36 per machine hour
c.$6.69 per machine hour
d.$19.22 per machine hour
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started