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 listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,089 3 5 Dinks 2,170 8 9 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $116,800. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $83,600. 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 Dinks is:

Answer 1

Answer:

Explanation:

Total overhead 200400 =116800+83600  

Divide by Total Direct labor hours 14117=3267+10850=(1089*3)+(2170*5)  

Single plantwide overhead rate 200400/14117=14.19    

Factory overhead allocated per unit of Dinks 70.98 =5*14.19