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

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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Please help finding solution for this problem Required : (1) Predertmined overhead rate cutting and finishing department REquired : (2)Total Mafacturing cost White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 8,800 62,000 Machine-hours 65,700 1,500 Total fixed manufacturing overhead cost $ 380,000 $ 489,000 Variable manufacturing overhead per machine-hour $ 2.00 — Variable manufacturing overhead per direct labor-hour — $ 4.75 Department Cutting Finishing Direct labor-hours 4 12 Machine-hours 90 4 Direct materials $ 720 $ 360 Direct labor…
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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. $459,138 11,800 dlh 16 dlh 2 dlh Finishing Dept. 56,203 4,900 6 20 Totals $515,341 16,700 dlh 22 dlh 22 dlh The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is
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The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of rent and utilities allocated to Dept. 2 using activity-based costing. Direct LaborHours MachineHours Operating Dept. 1 864 9,300 Operating Dept. 2 2,016 6,200 Totals 2,880 15,500 Factory overhead costs Rent and utilities $ 20,700 Indirect labor 16,300 Depreciation – Equipment 13,000 Total factory overhead $ 50,000
Accounting Equation The total assets and total liabilities (in millions) of ABC Corporation and XYZ Corporation follow: ABC XYZ Assets $28,042 $27,201 Liabilities 12,338 13,056 Determine the stockholders' equity of each company. ABC Corporation stockholders' equity million XYZ Corporation stockholders' equity million
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