Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows: Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 944 2 6 Dinks 1,973 3 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $87,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $109,600. Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a.$219.22 b.$50.50 c.$21.71 d.$75.74
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows: Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 944 2 6 Dinks 1,973 3 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $87,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $109,600. Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a.$219.22 b.$50.50 c.$21.71 d.$75.74
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows:
Product |
Number of Units |
Direct Labor Hours Per Unit |
Machine Hours Per Unit |
|---|---|---|---|
| Blinks | 944 | 2 | 6 |
| Dinks | 1,973 | 3 | 6 |
All of the machine hours take place in the Fabrication department, which has an estimated
Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all
a.$219.22
b.$50.50
c.$21.71
d.$75.74
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