Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory ove

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Blue Ridge Marketing Inc Manufactures Two Products A And B Presently The Company Uses A Single Plantwide Factory Ove 1 (23.17 KiB) Viewed 29 times

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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. Direct Product Overhead Labor Hours (dih) A B Painting Dept. $382,127 13,100 dih 6,200 15 dih 4 6 dlh 20 Finishing Dept. 89,714 Totals $471,841 19,300 dih 19 dih 26 dih 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 Ca. $14.47 per unit b. $29.17 per unit c. $495.43 per unit Od. $464.42 per unit
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. Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 1,029 1 4 Dinks 2,114 6 9 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $92,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $107,300. 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 Blinks is a. $87.20 b. $14.53 Cc. $107.31 Od. $73.83
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,005 15,156 April 2,641 10,209 May 2,854 12,494 June 3,863 17,917 a. $0.75 b. 50.79 Cc. $1.74 Od. 50.16