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 Overhead $248,000 72,000 $320,000 Direct Labor Hours (dlh) 10,000 dlh 10,000 20,000 dlh A 16 dlh 4 20 dlh Product B 4 dlh 16 20 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. O a. $64.00 per unit O b. $28.80 per unit O c. $99.20 per unit O d. $49.60 per unit
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 Overhead $248,000 72,000 $320,000 Direct Labor Hours (dlh) 10,000 dlh 10,000 20,000 dlh A 16 dlh 4 20 dlh Product B 4 dlh 16 20 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. O a. $64.00 per unit O b. $28.80 per unit O c. $99.20 per unit O d. $49.60 per unit
Chapter1: Financial Statements And Business Decisions
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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.
Painting Dept.
Finishing Dept.
Totals
Overhead
$248,000
72,000
$320,000
Direct Labor
Hours (dlh)
10,000 dlh
10,000
20,000 dlh
A
16 dlh
4
20 dlh
Product
B
4 dlh
16
20 dlh
Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.
O a. $64.00 per unit
b. $28.80 per unit
c. $99.20 per unit
O d. $49.60 per unit
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