Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory o rate for allocating overhead to products. However, management is considering moving to a multiple department rate syste allocating overhead. The following table presents information about estimated overhead and direct labor hours. Product Overhead $248,000 72,000 $320,000 The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the ma production department factory overhead rate method is Painting Dept. Finishing Dept. Totals Direct Labor Hours (dlh) O a. $396.80 per unit Ob. $425.60 per unit Oc. $214.40 per unit Od. $320.00 per unit 10,000 dih 10,000 20,000 dih A 16 dlh 4 20 dlh B 4 dlh 16 20 dih
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory o rate for allocating overhead to products. However, management is considering moving to a multiple department rate syste allocating overhead. The following table presents information about estimated overhead and direct labor hours. Product Overhead $248,000 72,000 $320,000 The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the ma production department factory overhead rate method is Painting Dept. Finishing Dept. Totals Direct Labor Hours (dlh) O a. $396.80 per unit Ob. $425.60 per unit Oc. $214.40 per unit Od. $320.00 per unit 10,000 dih 10,000 20,000 dih A 16 dlh 4 20 dlh B 4 dlh 16 20 dih
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Overhead
$248,000
72,000
Direct
Labor Hours (dlh)
O a. $396.80 per unit
Ob. $425.60 per unit
Oc. $214.40 per unit
Od. $320.00 per unit
A
Painting Dept.
10,000 dlh
Finishing Dept.
10,000
Totals
$320,000
20,000 dih
The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple
production department factory overhead rate method is
B
16 dlh
4
20 dlh
4 dlh
16
20 dih
A
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