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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.

The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

a.$214.40 per unit

b.$115.20 per unit

c.$425.60 per unit

d.$320.00 per unit

2.)

Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $356,976, using 241,200 direct labor hours. The factory overhead budget for the Assembly Department is $540,954, using 73,800 direct labor hours.

If a desk lamp requires 3 hour of fabrication and 6 hours of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 9,200 units are produced is

a.$236,027

b.$67,436

c.$111,933

d.$445,464

3.)

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.

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $105,100. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $104,700.

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.$23.98

b.$104.72

c.$87.33

d.$43.66