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 Product Overhead Labor Hours (dlh) B Painting Dept. $243,300 11,500 dlh 14 dlh 7 dlh Finishing Dept. 71,600 6,600 3 18 Totals $314,900 18,100 dlh 17 dlh 25 dlh 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 Oa. S148.12 per unit Ob. $21.16 per unit Oc. S75.94 per unit Od. S121.78 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. Direct Product Overhead Labor Hours (dlh) B Painting Dept. $243,300 11,500 dlh 14 dlh 7 dlh Finishing Dept. 71,600 6,600 3 18 Totals $314,900 18,100 dlh 17 dlh 25 dlh 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 Oa. S148.12 per unit Ob. $21.16 per unit Oc. S75.94 per unit Od. S121.78 per unit

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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< overhead and direct labor hours. Painting Dept. Finishing Dept. Totals ring moving to a multiple department rate system for allocating overhead. The Direct Overhead Labor Hours (dlh) Product A $241,200 83,700 $324,900 10,800 dlh 10,100 20,900 dlh 7 dlh 3 10 dlh Product B 11 dlh 7 18 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.55 O b. $279.90 Oc. $155.50 O d. $156.33
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 DirectLabor Hours (dlh) Product A B Painting Dept. $374,640 11,200 dlh 16 dlh 2 dlh Finishing Dept. 100,440 8,100 7 17 Totals $475,080 19,300 dlh 23 dlh 19 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 a.$622.00 per unit b.$33.45 per unit c.$277.70 per unit d.$12.40 per unit
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