Blue Ridge Marketing Inc. manufactures two products, A and B. Preseitly, the compaliy uses a single plaitwio 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 Overhead Labor Hours (dih) A B Painting Dept. $256,100 10,600 dih 7 dih 8 dlh Finishing Dept. 83,700 11,000 2. 7. Totals $339,800 21,600 dlh 9 dih 15 dih Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $169.12 Ob. S15.73 Oc. $235.95 Od. 14157

Blue Ridge Marketing Inc. manufactures two products, A and B. Preseitly, the compaliy uses a single plaitwio 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 Overhead Labor Hours (dih) A B Painting Dept. $256,100 10,600 dih 7 dih 8 dlh Finishing Dept. 83,700 11,000 2. 7. Totals $339,800 21,600 dlh 9 dih 15 dih Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $169.12 Ob. S15.73 Oc. $235.95 Od. 14157

Name: Blue Ridge Marketing Inc. manufactures two products, A and B. Present
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Description: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocatingoverhead to products. However, management is considering moving to a multiple department rate system for

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. 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. Overhead Direct LaborHours (dlh) Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.
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