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. Product Direct Overhead Labor Hours (dlh) A $250,700 11,200 dlh 5 dlh 8 dlh Painting Dept. Finishing Dept. 73,200 10,500 3 $323,900 21,700 dlh 8 dlh 16 dlh Totals Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $238.88 Ob. $119.44 Oc. $111.92 Od. $14.93

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. Product Direct Overhead Labor Hours (dlh) A $250,700 11,200 dlh 5 dlh 8 dlh Painting Dept. Finishing Dept. 73,200 10,500 3 $323,900 21,700 dlh 8 dlh 16 dlh Totals Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $238.88 Ob. $119.44 Oc. $111.92 Od. $14.93

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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. $473,696 11,300 dlh 15 dlh 4 dlh Finishing Dept. 51,744 4,900 5 18 Totals $525,440 16,200 dlh 20 dlh 22 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.$357.76 per unit b.$41.92 per unit c.$681.60 per unit d.$10.56 per unit
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL
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. $309,088 10,400 dlh 12 dlh 3 dlh Finishing Dept. 46,852 5,300 6 16 Totals $355,940 15,700 dlh 18 dlh 19 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 a.$230.60 per unit b.$8.84 per unit c.$29.72 per unit d.$409.68 per unit
Please help me
Acme Company manufactures and sells two products, Product A and Product B. Acme's total manufacturing overhead cost is $112,000, and Acme applies overhead to jobs using three activity-based overhead rates, computed as follows: Activity Setups Machining Packaging $22.40 $20.80 Cost pool Allocation base Number of setups Machine hours $24.40 $24.80 ? ? $10,000 Units packed Units of allocation base Product A 20 setups 1,000 hours 150 units Product B 20 setups ? 350 units If Acme decides to use a plantwide overhead rate with machine hours as the allocation base, what would be its plantwide overhead rate? Allocation rate $300 per setup $18 per MH ?
Mabry Organics manufacturers organic fruit snacks. They use a departmental method of allocating manufacturing overhead. Department A's predetermined overhead rate is $5.67 per direct labor hour. Department B's predetermined overhead rate is $14.88 per machine hour. Actual cost driver information per department is provided below. Department A Department B Actual direct labor hours 50,200 DL hours 23,400 DL hours Actual machine hours 48,900 machine hours 17,500 machine hours What is the total applied manufacturing overhead?
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $11,400 Assembly Parts 4,500 4,500 217,800 Packaging Pieces 250 200 27,450 Machine Hours per Unit 4 3 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit ? ? B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit ? ?
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $9,600 Assembly Parts 3,000 3,000 143,400 Packaging Pieces 500 400 54,450 Machine Hours per Unit 4 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $4
< 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
Ajay
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $11,400 Assembly Parts 4,500 4,500 217,800 Packaging Pieces 250 200 27,450 Machine Hours per Unit 4 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $4