Determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc.uses a multiple department rate system.
A) $425.60 per unit
B) $115.20 per unit
C) $214.40 per unit
D) $320.00 per unit

Question

Determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc.uses a multiple department rate system. ​
A) $425.60 per unit
B) $115.20 per unit
C) $214.40 per unit
D) $320.00 per unit

Quizplus · Accepted Answer

To determine the overhead from both production departments allocated to each unit of Product B, we need to add the overhead costs from both departments and divide by the total number of units produced.

Total overhead cost from both departments = $25,200 + $16,800 = $42,000
Total units of Product B produced = 200

Therefore, the overhead per unit of Product B = $42,000 / 200 = $214.40 per unit.

Therefore, the correct choice is C.

Determine the Overhead from Both Production Departments Allocated to Each