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

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. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. a.$496.00 b.$320.00 c.$640.00 d.$144.00

Expert Solution

Answer- Single plantwide Overhead rate
             = Total overhead Costs / Total direct labour hours
             =   $ 320,000 / 20,000 DLH
             =    $ 16 per DLH

Overhead rate per unit for Blue Ridge Marketing Inc.'s Product
                    = Single plantwide Overhead rate x hours Allocated to B
                    =   $ 16 x 20 DLH
                    =    $ 320

Hence, the correct option is b.$320.00

Kindly give me thumbs up if u like my answer...Thanks!!!

ekkarill92 answered 2 years ago

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses...

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. Determine the overhead in the Finishing Department for each unit of Product A if Blue Ridge Marketing Inc, uses a multiple department rate system $64.00 per unit $28.80 per unit $49.60 per unit $99.20...

Calculator Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a...

Calculator 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. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20...

Carpenter Corporation manufactures two products, Product A and Product B. The company uses an Activity Based...

Carpenter Corporation manufactures two products, Product A and Product B. The company uses an Activity Based Costing System that assigns costs based on activity cost drivers. The following data is available: Product A Product B Total Direct Materials Cost (per unit) $70 $140 Direct Labor Costs (per hour) $20 $30 Supporting Labor Costs $16,000 Utilities and Repairs Costs $96,000 Order Processing Costs $24,560 Direct Labor (Production) Hours (per unit) 2 3 Production Units 2,400 800 Supporting Labor (hours) 600 200 Customer...

Rosman, Inc., manufactures and sells two products: Product Q1 and Product G2. The company currently uses...

Rosman, Inc., manufactures and sells two products: Product Q1 and Product G2. The company currently uses a plantwide predetermined overhead rate based on direct labor-hours. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q1 720 13.2 3,960 Product G2 820 10.2 3,240 Total direct labor-hours 7,200 The...

Royal Company manufactures two products, Tables and Seats. Both products are manufactured in a single factory....

Royal Company manufactures two products, Tables and Seats. Both products are manufactured in a single factory. There is $1,600,000 of factory overhead budgeted for the period. Royal Company plans to manufacture 1,000 units of each product. Assume tables and seats both require 10 direct labor hours per unit to manufacture. Required: 1. Determine the total cost for a table and for the seat. 2. Based on that determine the selling price for the table and for the seat, when company...

Logan Company manufactures several toy products. Logan presently manufactures and assembles all the parts for its...

Logan Company manufactures several toy products. Logan presently manufactures and assembles all the parts for its toy truck product. Another toy company has offered to sell the parts to Logan for $2.00 per truck. Logan is considering this offer. If Logan buys the truck parts instead of making them, the space used in producing the parts could be used for a new toy monster, which is scheduled to begin production next year. If Logan continues to produce the parts for...

Jennifer Company has two products: A and B. The company uses activity-based costing

Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity based costing system for Supporting customers is closest to:

Pardoe, Inc., manufactures a single product. The company uses a standard cost system and has established...

Pardoe, Inc., manufactures a single product. The company uses a standard cost system and has established the following standards for one unit of product: Standard Quantity of inputs Standard Price or Rate per input Standard Cost per unit Direct materials 1.5 pounds $3.20 per pound $4.80 Direct labor 0.7 hours $5.00 per hour $3.50 Pardoe's budget for March used estimated production and sales of 2,900 units. During March, the following activity was recorded by the company: The company produced 3,000...

company manufactures two products, A and B. Both products utilise the same material and require skilled...

company manufactures two products, A and B. Both products utilise the same material and require skilled labour. Materials and skilled labour are the only variable costs. Product details are as follows: A B £ £ Selling price 24 30 Material costs 5 10 Skilled labour costs 16 16 Materials cost £5 per kg. Skilled labour costs £8 per hour. For the month of May 2020 maximum expected demand is for 1,000 units of A and 1,500 units of B. In May 2020...

Magnum Company manufactures two different products, A and B. In the past, the company has allocated...

Magnum Company manufactures two different products, A and B. In the past, the company has allocated its plant wide manufacturing overhead costs based on direct labour hours. The new controller suggests that the company consider assigning overhead costs to the products using either traditional activity-based costing or time-determined activity-based costing. After studying the manufacturing activities and costs, the controller collected the following data for last year: Item Product A Product B Units produced and sold 3,000 5,000 Direct labour hours...

Question