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. Direct Overhead Labor Hours (dlh) Product A Product B Painting Dept. Finishing Dept. Totals $511,768 65,296 14,200 dlh 12 dlh 7 dlh 5,300 3 17 $577,064 19,500 dlh 15 dlh 24 dlh 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 O a. $12.32 per unit Ob. $469.44 per unit O c. $461.72 per unit Od. $36.04 per unit 86°F Partly sunny 1:43 AM 6/12/202 XILL F4 F5 F6 F7 54 $ C F8 F9 prt sc F10 home end insert delete F11 F12 包 % 85 ト < 6 < & 87 7 * 8 ( 9 | | a + 11 = bar

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. Direct Overhead Labor Hours (dlh) Product A Product B Painting Dept. Finishing Dept. Totals $511,768 65,296 14,200 dlh 12 dlh 7 dlh 5,300 3 17 $577,064 19,500 dlh 15 dlh 24 dlh 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 O a. $12.32 per unit Ob. $469.44 per unit O c. $461.72 per unit Od. $36.04 per unit 86°F Partly sunny 1:43 AM 6/12/202 XILL F4 F5 F6 F7 54 $ C F8 F9 prt sc F10 home end insert delete F11 F12 包 % 85 ト < 6 < & 87 7 * 8 ( 9 | | a + 11 = bar

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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