Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows: Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 944 2 6 Dinks 1,973 3 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $87,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $109,600. Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a.$219.22 b.$50.50 c.$21.71 d.$75.74
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows: Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 944 2 6 Dinks 1,973 3 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $87,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $109,600. Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a.$219.22 b.$50.50 c.$21.71 d.$75.74
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 31E: Chester Company provided information on overhead for its three producing departments as follows:...
Related questions
Question
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows:
Product |
Number of Units |
Direct Labor Hours Per Unit |
Machine Hours Per Unit |
---|---|---|---|
Blinks | 944 | 2 | 6 |
Dinks | 1,973 | 3 | 6 |
All of the machine hours take place in the Fabrication department, which has an estimated
Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all
a.$219.22
b.$50.50
c.$21.71
d.$75.74
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning