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. Using a single plantwide rate, determine the overhead rate per unit for Product B:
A) $496.00
B) $144.00
C) $640.00
D) $320.00

Question

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. Using a single plantwide rate, determine the overhead rate per unit for Product B:
A) $496.00 
B) $144.00 
C) $640.00 
D) $320.00

Quizplus · Accepted Answer

The Answer of 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. Using a single plantwide rate, determine the overhead rate per unit for Product B:
A) $496.00 
B) $144.00 
C) $640.00 
D) $320.00