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. Painting Dept. Finishing Dept. Totals X a. $27.39 per unit O b. $53.82 per unit Overhead c. $82.17 per unit O d. $23.87 per unit $257,500 70,800 $328,300 Direct Labor Hours (dlh) 9,400 dlh 8,900 18,300 dlh Product A 14 dlh 7 21 dlh B 3 dlh 18 The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is 21 dlh

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. Painting Dept. Finishing Dept. Totals X a. $27.39 per unit O b. $53.82 per unit Overhead c. $82.17 per unit O d. $23.87 per unit $257,500 70,800 $328,300 Direct Labor Hours (dlh) 9,400 dlh 8,900 18,300 dlh Product A 14 dlh 7 21 dlh B 3 dlh 18 The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is 21 dlh

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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