Question

PLEASE answer all of the follwing, thank you!

The 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	Labor Hours Per Unit	Machine Hours Per Unit
Blinks	1,171	1	5
Dinks	1,954	7	6

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $93,900. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $77,200.

The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks?

a.$77.21

b.$80.66

c.$67.00

d.$11.52

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

				Activity Cost							Activity Base
Procurement				$344,200							Number of purchase orders
Scheduling				$200,200							Number of production orders
Materials handling				$462,200							Number of moves
Product development				$729,600							Number of engineering changes
Production				$1,474,600							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,910			340				1,350			11				2,000			2,400
Tape drives	2,200			205				500			3				9,800			4,400
Wire drives	11,000			720				4,300			28				10,000			2,300

Determine the activity rate for product development per change.

a.$8,686

b.$78,171

c.$17,371

d.$36,480

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.

	Overhead		Direct Labor Hours (dlh)			Product
						A		B
Painting Dept.	$256,100		12,000	dlh		5	dlh	12	dlh
Finishing Dept.	86,500		10,200			5		8
Totals	$342,600		22,200	dlh		10	dlh	20	dlh

Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.

$154.30

$15.43

$106.71

$308.60

Answer 1

Answer:-1)-Total labor hours=(1171 units*1 hour per unit)+ (1954 units*7 hour per unit)

=$1171 hours+13678 hours

=14849 hours

Total overhead cost =$93900+$77200 =$171100

The overhead cost per unit for Blinks= Total overhead cost/ Total labor hours

=$171100/14849 hours

=$11.52 per hour

2)- The activity rate for product development per change=Product development cost/ No. Of engineering changes

=$729600/(11+3+28)

=$729600/42

=$17371

3)- Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B= Total overhead cost/ Total labor hours

=$342600/22200 hours

=$15.43