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 $271,200 71,000 $342,200 Direct Labor Hours (dih) 10,900 dth 7,600 10,500 din Product A 12 dih 6 18 dih B 5 dlh 19 24 GIN 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 392.49 per unit O $124.40 per unit Oe 324 38 per unit Od 14671 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 $271,200 71,000 $342,200 Direct Labor Hours (dih) 10,900 dth 7,600 10,500 din Product A 12 dih 6 18 dih B 5 dlh 19 24 GIN 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 392.49 per unit O $124.40 per unit Oe 324 38 per unit Od 14671 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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