Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,002 4 8 Dinks 2,256 7 5 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $112,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $83,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is a. $21.02 b. $55.27 c. $332.02 d. $69.09
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,002 4 8 Dinks 2,256 7 5 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $112,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $83,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is a. $21.02 b. $55.27 c. $332.02 d. $69.09
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1PA: Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve...
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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 listed below.
Product |
Number of Units |
Direct Labor Hours Per Unit |
Machine Hours Per Unit |
Blinks | 1,002 | 4 | 8 |
Dinks | 2,256 | 7 | 5 |
All of the machine hours take place in the Fabrication department, which has an estimated
Ramapo Company uses a single plantwide overhead rate to apply all
a. $21.02
b. $55.27
c. $332.02
d. $69.09
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