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 $257,800 76,100 $333,900 Direct Labor Hours (dlh) 10,200 dlh 11,700 21,900 dlh Product A 6 dlh 4 10 dlh B 10 dlh 6 16 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.25 Ob. $151.65 Oc. $152.50 Od. $244.00
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 $257,800 76,100 $333,900 Direct Labor Hours (dlh) 10,200 dlh 11,700 21,900 dlh Product A 6 dlh 4 10 dlh B 10 dlh 6 16 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.25 Ob. $151.65 Oc. $152.50 Od. $244.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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
$257,800
76,100
$333,900
Direct
Labor Hours (dlh)
10,200 dlh
11,700
21,900 dlh
Using a single plantwide rate, the factory overhead alloca
Oa. $15.25
Ob. $151.65
Oc. $152.50
d. $244.00
Product
A
6 dlh
4
10 dlh
ed per unit
B
10 dlh
6
16 dlh
Product B is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa001db2e-0333-4c10-9c3b-8ec52107d9dc%2Feda9ca25-eecf-401a-88ee-f0233c1c3ace%2Fgw5780r_processed.jpeg&w=3840&q=75)
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
$257,800
76,100
$333,900
Direct
Labor Hours (dlh)
10,200 dlh
11,700
21,900 dlh
Using a single plantwide rate, the factory overhead alloca
Oa. $15.25
Ob. $151.65
Oc. $152.50
d. $244.00
Product
A
6 dlh
4
10 dlh
ed per unit
B
10 dlh
6
16 dlh
Product B is
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