Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide
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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 | Direct Labor Hours (dlh) | Product | |||||||
A | B | ||||||||
Painting Dept. | $418,782 | 11,800 | dlh | 15 | dlh | 6 | dlh | ||
Finishing Dept. | 68,503 | 6,100 | 4 | 16 | |||||
Totals | $487,285 | 17,900 | dlh | 19 | dlh | 22 | dlh |
Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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