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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)
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:...
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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
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